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“Few are able to distill the complex down to a simple concept. It requires
part art, science, and hard work to deliver a well-honed position and brand
message. David accomplishes this on an ongoing basis and in Making the
Complex Compelling goes further, simplifying and delivering the
complexities of life science marketing in a well organized blueprint. Dare to
engage...”
–BRIAN REGAN, VP Marketing, TearScience
“This book does an excellent job of demystifying the marketing process for
non-marketers. The chapters on positioning and branding are especially
valuable as these are probably the most misunderstood and misused topics,
considering their importance at all stages of a company’s development.”
–MALCOLM THOMAS, President and CEO, Arbovax, Inc
Making The Complex Compelling is an absolute must-read for life science
executives trying to grow and differentiate their business in today’s
crowded, competitive marketplace. David does an excellent job simplifying
complex strategies in a concise and compelling way, and illustrates
beautifully with many real world examples. Most importantly, these
principles work. Applying them to my company allowed us to grow at a
CAGR over 100% for 7 years and then sell to an S&P 500 company. This is
a highly recommended, enjoyable read for anyone in the life science field
responsible for commercial operations or marketing.
–TODD GROSSHANDLER, Owner, Enthalpy Analytical
“Whether you agree with David’s somewhat proactive statement that the
level of marketing in today’s life sciences is “appalling”, his new book
Making the Complex Compelling will certainly resonate with both novice
and veteran marketers, alike. It contains a level of practical detail that will
challenge you to consider how good your marketing practices really are.”
–ANDREW L. BERTERA, Executive Director of Marketing, New
England Biolabs
“David Chapin distill his years of design and life-sciences marketing
experience into a highly readable conversation for those interested in or
responsible for any aspect of marketing in the life-sciences industry. From
entry-level marketer to the marketing executive in the C-suite, there is
actionable information that can be used to turn contacts into clients. This
book will help you make your complex marketing story compelling to
potential customers, including those who don’t yet know your firm. And
David does a superb job of simplifying this complex topic and providing a
compelling solution to the life-sciences marketing challenge.”
–DICK BLACKBURN, Associate Professor, Associate Dean,
Undergraduate Business Programs, Kenan-Flagler Business School,
University of North Carolina at Chapel Hill
“As a scientist who tends to think analytically, this book opened my mind to
how marketing should be done based on our customer’s point of view. The
information in this volume is very useful; it is wonderful to have a
marketing resource that is tuned to the specific challenges of marketing life
science companies.”
–RICHARD SOLTERO, President, InstantGMP
“Marketing in the life sciences is a paradox in which communicating in a
targeted concise way is seemingly in conflict with the thirst for deep
analytical knowledge from a scientific audience. But at a time when the
majority of the buying decision is completed over the internet, via word of
mouth and on reputation alone, before the first engagement even occurs, it
is essential that the life science marketer is skilled to establish a consistent,
concise, and differentiated brand position that meets all seven of David
Chapin’s stated success attributes. This is extremely difficult to do in a
regulated, commoditized arena.
With his wealth of experience and deep understanding from working with
life sciences companies, David Chapin has constructed the manual on life
science marketing strategy with Making the Complex Compelling. His book
is littered with real life examples and practical steps to create and
implement an effective and compelling life sciences marketing strategy.
This is a quick and easy read for those looking to add value for high-
performance.”
–NICHOLAS SPITTAL, Senior Director, Global Commercial Affairs,
Chiltern
“David Chapin’s systematic and scientific approach to life science
marketing always ends up being truly inspirational. As marketers we are
sometimes dazzled by cleverness and sizzle, but the depth revealed in
Making the Complex Compelling will give you insights into what it takes to
develop and deliver campaigns that stick and deliver, consistently.”
–ALLAN MOHESS, Sr. Director Clinical Informatics, bioMérieux
“For someone that hasn’t worked with David Chapin, Making the Complex
Compelling outlines the necessary steps that enable life science companies
to keep moving forward in a sustainable way. The value to the organization
is at least as important as the product or service they are selling. Each step
in this book has components of “education, inspiration, and reassurance”
embedded within it, so that the reader self-identifies and sees the value in
developing their marketing the way it’s described.”
–ANTON LEWIS USALA MD, President and CEO, CTMG, Inc.
“Marketing by nature is complex. The approach, insights and examples that
David uses in this book have been instrumental in helping me position my
business for profitable growth. I would highly recommend this book as
required reading for any marketer or executive looking to understand how
marketing can impact your company.”
–BRIAN KERSLAKE, Global Marketing Director, Kimble-Chase
“David Chapin makes a compelling case for why brands and marketing are
critically important, and offers practical insights about what managers
should do about it. This book will inspire firms in the life sciences to craft
brand strategies that can creatively enhance value for long-term success.”
–JON BOHLMANN, PH.D., Assoc. Professor of Marketing, Poole
College of Management, North Carolina State University
“In Making the Complex Compelling Chapin has crafted a powerful “GPS”
to help brand managers and their organizations optimally navigate the
waters between science and marketing.”
–MARTIN DOYLE, Director Marketing Operations and Strategic
Business Planning, GlaxoSmithKline
courageous thought leadership content
Rockbench Publishing Corp.
6101 Stillmeadow Dr.,
Nashville, TN 37211
www.rockbench.com
Copyright ©2014 David Chapin
All Rights Reserved
Interior and cover design by Faceout Studio
Interior illustrations by David Chapin and David Storey
Library of Congress Control Number: 2014956399
Printed in the United States of America
First edition, 2014
ISBN: 978-1-60544-035-4
TABLE OF CONTENTS
Preface
Introduction
Chapter 1:
Challenge, Chaos, and Opportunity
Chapter 2:
Marketing versus Science
Chapter 3:
The Myth of Marketing Immunity
Chapter 4:
The Tragedy of Undifferentiated Claims
Chapter 5:
How People (Really) Buy
Chapter 6:
The Marketing Mechanism of Action (MMOA)
Chapter 7:
Position–Your Marketing DNA
Chapter 8:
Crafting Your Positioning Statement
Chapter 9:
Your Brand-Story
Chapter 10:
Using Archetypes to Clarify Your Brand-Story
Chapter 11:
The Ladder of Lead Generation (LOLG)
Chapter 12:
Content Marketing
Chapter 13:
Content Strategy, Creation, and Maximization
Chapter 14:
Measuring Marketing ROI
Chapter 15:
Conclusion–High-Performance Life Science
Marketing
Epilogue:
The Future of Life Science Marketing
Acknowledgments
Appendix 1:
Relationships between Families of Brand-Stories
Appendix 2:
Marketing Performance Assessment
Index:
Preface
Who This Book Is For
If you’re responsible for marketing your products and services in the life
sciences–specifically the sector devoted to discovering, researching,
developing, and shepherding drugs and medical devices from discovery and
invention up through the regulatory approval process–this book is for you.
If you are a marketer at (or the owner of) a company involved in
discovery, preclinical, or clinical trial activities related to pharmaceutical
and medical-device development, this book is for you.
If your offerings include pre-regulatory-approval life science equipment,
instrumentation, products, or services that you want to market success-
fully–this book is for you.
This book does not address direct-to-clinician or direct-to-consumer
marketing of pharmaceuticals, nor does it address retail health-care
marketing, such as hospitals, etc.–these are special cases. While many of
the concepts presented here are applicable, the strategies and tactics
necessary to satisfy the specialized regulatory requirements in these cases
are beyond the scope of this work.
What this book will provide is a wealth of information–information you
need to ensure that the marketing created by you (or the partners you enlist)
will be high performance.
Why I Wrote This Book
There is a significant amount of ineffective marketing in the life sciences.
Bluntly put, it’s appalling how poor these efforts are. One aim of this
volume is to create a common understanding of the proper roles and goals
of marketing among professionals working in the life sciences. Another is
to provide tools to enable marketers in this sector to improve their own
organizations’ marketing efforts. To that end, I have written this book as a
strategic guide to doing it yourself. To the extent that this is successful, I
have achieved one of my aims.
As a by-product of these efforts, I hope that improved marketing will
yield greater efficiencies along the drug and medical-device development
chain, enabling the sector to speed the introduction of therapies that are
more effective and less expensive. This is a lofty goal to be sure, but one
that will benefit all of humanity.
Introduction
I’ve been involved with marketing for the life sciences for more than two
decades. During that time, when I’d ask people why they chose their career
path, the most common answer was some form of either, “I was interested
in helping people” or “I got drawn in by the science.” I’ve never heard, “I
got in it for the money.” To say this in another way, their decision was often
driven by a desire to change lives for the better.
When developing effective therapies to enable these changes, however,
there are two main failure points. The first is the lack of proven efficacy.
The second is the lack of money. Thousands of promising therapies have
gone untested and undeveloped because of the lack of money. Addressing
the first problem (provable efficacy) requires great science. Addressing the
second problem (lack of money) requires something else entirely.
Many life science products and services–and the businesses built around
them–flounder because the creators believe that delivering great science
will solve both problems: proving efficacy while simultaneously promoting
differentiation, attracting the attention of potential investors and customers,
and driving sales. This is drastically–and tragically–incorrect.
Instead of making the complex compelling, the typical scientific
approach to communication and marketing tends to make the already
complex even more inaccessible and unintelligible.
So how do you make the complex compelling? How do you create high-
performance marketing? This book will show you how.
I’ll set the stage by looking at the challenges and opportunities in the life
sciences today (chapter one). I’ll examine how the traditional scientific
mindset, while well suited for doing science, is poorly suited for creating
high-performance marketing (chapters two and three). Then, I’ll visit the
foundation for all high-performance marketing–differentiation (chapter
four). And I’ll examine the buying cycle, because understanding how
people buy is fundamental for creating effective marketing (chapter five).
The core concepts of creating high-performance marketing come to light
when I discuss positioning (chapters six and seven). The tools to create your
own positioning statement are covered next (chapter eight). Then, I’ll
discuss your brand-story (chapter nine), the use of archetypes (chapter 10),
and the ladder of lead generation (chapter 11). Once you have mastered
these topics, I’ll move into more advanced subjects, such as content
marketing (chapters 12 and 13) and measuring ROI (chapter 14). I’ll
conclude with a look at how all these strategies and tactics work together to
create a high-performance marketing effort (chapter 15). At the end, I’ll go
out on a limb and foretell the future of marketing by predicting future trends
(epilogue). For further study, there are two appendicies with some
additional information on brand families and a performance assessment.
I’ve written this book as a guide; if you put into practice the principles
covered here, you’ll be able to develop and implement high-performance
marketing strategies and tactics. There are plenty of examples throughout;
I’ve included these so you can learn from others’ experiences. Here’s to
your success in making the complex compelling!
1
CHALLENGE,
CHAOS, AND
OPPORTUNITY
Several years ago, Forma Life Science Marketing (the company I run) was
hired by a laboratory to diagnose and treat significant issues with its
marketing and sales. It was having trouble getting traction in the
marketplace; growth had stalled.
Using Forma’s diagnostic tools and processes, we determined, among
other things, that its industry sector was fragmented–with a few large
competitors, and many small ones, each offering similar services. Each lab
owned equipment that was essentially the same. Each lab used this
equipment to develop assays to test patients’ blood samples for evidence of
the efficacy of drugs being administered during clinical trials, or for
evidence of potentially harmful side effects that would stop the trials in
their tracks.
Forma’s diagnosis showed that, as in all such cases, there was significant
regulatory scrutiny of the assays and of the data coming from the assays. So
all labs had developed similar work processes for fear of drawing unwanted
regulatory scrutiny. In addition, all labs produced similar results.
The stakes for their customers were large; the difference between a drug
that makes it through the regulatory approval process and one that doesn’t
can be huge–millions or billions of dollars, not to mention the careers
involved. The risks for their customers were high; hundreds or thousands of
compounds fail for every one that makes it through regulatory approval.
Each lab claimed that it was different, offering better service than
everyone else. But realistically, while there were some differences between
the labs that became evident once you were a customer, there were few
differences that could be verified before a purchase. They all used similar
equipment and similar processes to produce similar results. Simply put, it
was hard for customers to find any reason to hire one lab over another.
Without any meaningful differentiation, competition tended to focus on
price. Falling prices drove service levels down, which increased the mistrust
potential customers felt about the marketing claims of superior service
offered by almost every competitor.
This situation is not unusual. In the life science sectors related to the
development of drug and medical devices (extending from discovery
through preclinical to clinical trials), high stakes and high risks are
common. The competition is fierce. But regulatory scrutiny tends to
produce homogenization of both the work process and the work product.
How can any provider be seen as unique (the foundation of successful
marketing and sales)?
This situation, which looks so dire, is a marketer’s dream.
High stakes, high risks, and undifferentiated competitors set up a
situation in which high-performance marketing can make a real difference.
Indeed, working closely with our client, Forma was able to identify key
differentiators, define a unique value proposition, create a unique brand,
articulate the brand in a compelling story, and express all of this through
high-performance marketing tactics.
After introducing this new marketing, our client experienced an annual
growth rate of greater than 100 percent for several years running, during the
middle of the Great Recession. It attributed this growth, in no small part, to
our high-performance marketing efforts. One competitor’s salesman came
up to the lab’s booth during a trade show and said, “We hate you guys.”
When asked why, the salesman responded, “Because you have something to
talk about.”
The lab was eventually sold to one of the largest competitors in the
sector, leading to a handsome payout for the owners.
Yes, there are significant challenges in life science marketing. But the
chaos of the sector means there is also a lot of opportunity. You can
compete successfully and this book can help you do so. First, you must start
with a clear understanding of the competitive environment.
Challenge, Chaos, and Opportunity
The life science industry is in turmoil–a blend of crisis, confusion, chaos,
and opportunity. Developers of life science products and services must now
navigate a globalized market, increasing costs of development, and
constantly evolving technology.
As if that’s not enough, old business models are disintegrating and new
ones are emerging. Regulatory climates are in flux. And these are just a few
of the many trends that are impacting the development of life science
products and services, including scientific instrumentation, drugs, and
medical devices.
Your marketing decisions will be affected by these changing external
factors (or they should be), so it is useful to take a closer look at the most
significant trends that already are impacting your business.
Globalization: The development of life science products and services is
maturing as an international business. Discovery, testing, and
manufacturing are now less limited by geography and political boundaries.
While this globalization brings increased competition from global suppliers,
it also gives life science organizations access to talent and resources they
did not have before.
Disintegrating Business Models: When Henry Ford started making cars,
his operations were vertically integrated. For example, Ford owned a sheep
farm in order to control the quality of wool for his seat fabrics. For decades,
the major pharmaceutical companies operated in a similar, vertically
integrated manner, controlling everything from the early discovery of new
technologies and compounds all the way through the final marketing of
instruments, approved drugs, or medical devices.
Today, life science companies are increasingly focused on a few core
competencies and so the outsourcing of secondary or tertiary aspects of the
business has become the norm. The life science development ecosystem is
now composed of suppliers and partners that provide research,
development, toxicology, ADME (absorption, distribution, metabolism, and
excretion), formulation, CMC (chemistry, manufacturing, and control), and
more. As the market has become more and more connected, employing
others to perform functions more efficiently, faster, and at lower cost has
become nearly frictionless.
Partnerships, preferred vendors, functional service providers, and crowd-
sourcing are growing trends in the life sciences, changing and diversifying
the ways organizations can monetize their expertise.
Rising Costs: To discover, develop, test, validate, and bring to market
drugs, medical devices, diagnostic assays, scientific instruments, and other
products and services in the life sciences is already expensive and there is
every indication it will become even more so.
Depending upon whose figures you believe, it can cost anywhere from
one to two billion dollars or more to bring a single drug from discovery to
final FDA (Food and Drug Administration) approval. These figures do not
include any ongoing costs, such as marketing. While developing a medical
device, instrument, and diagnostic assay may not be as expensive, the costs
are still significant.
Decreasing Efficiencies: The efficiency of drug development (measured as
the number of products that achieve regulatory approval divided by the total
cost of all drug development) is trending downward, and has been for
decades. The industry is searching for solutions to address the fundamental
inefficiencies in the development process.
Decreasing Revenue: The so-called patent-cliff is a fact of life. As patent
expirations for blockbuster drugs loom (or have already come and gone),
increased competition and reduced revenue is the order of the day.
A Rising Standard of Efficacy: Blockbuster drugs such as Lipitor are very
effective at treating their target conditions. This makes introducing a new,
more effective drug even more difficult, particularly when the new drug
will be subjected to research focused on comparative effectiveness.
As these blockbuster drugs come off patent, it may be so difficult and so
expensive to find a replacement compound that meets all the criteria for
blockbuster status that companies abandon the attempt. For example, Pfizer,
maker of Lipitor, the world’s best-selling drug for years, abandoned its
research and development of compounds that could outperform Lipitor.
Economic Challenges: The effects of the Great Recession will linger for
years. This near-meltdown was global in scope and revealed many
weaknesses in the life science financial ecosystem. With credit limited,
many start-up companies face “shorter runways” and have less development
time before needing to make the “launch or abort” decision. Venture
capitalists continue to hoard their money and invest only in the most
promising opportunities. Financing is harder to get, making it that much
tougher for start-ups–the plankton of the life science ecosystem–to reach
profitability.
Regulatory Uncertainty: Regulatory bodies are being subjected to growing
scrutiny and increasing political pressure. Expectations for patient safety are
growing. The number of new drug approvals is decreasing. New regulations
are being considered or are pending. And proposals are being made to
overhaul regulatory functions. There is a large political battle being fought,
and the end result is anyone’s guess. The FDA is undergoing an initiative to
increase transparency. With this much confusion in the marketplace,
divining the future is extremely difficult. Thankfully, the news is not all
bad.
New Discoveries: James D. Watson and Francis Crick published their
discovery of the molecular structure of DNA in 1953. Up until the 1970s,
scientists thought that 99 percent of a human’s genetic code was “junk.”
Now, only a handful of decades later, the genetic code is being revealed as a
very complex system of genes, switches, regulators, and amplifiers. Teams
of scientists have created man-made DNA and replaced the naturally
occurring DNA of a cell, opening up vistas previously unimaginable.
These new discoveries, among others, have led to the creation of many
new industry sectors, serving markets whose names end in -omics:
genomics, proteomics, metabolomics, cytomics, kinomics, lipidomics,
epigenomics, etc.
Despite temporary restrictions on research in certain areas (e.g., stem
cells), the pace of discovery continues to gain momentum, and will continue
to do so for the foreseeable future. The opportunity to capitalize on these
discoveries is significant and the number of those opportunities will
continue to expand.
New Technologies: New research tools are being introduced every year,
replacing existing standard tools. New technologies are being brought on
line. New diagnostic tests are being approved. New assays are being
developed. Which of these will win and become accepted by the
marketplace? Which will lose and become footnotes?
Rising Demand: The world’s population is getting older and an aging
population places greater demand on the health-care system. The ability to
diagnose and treat more diseases also is growing and so the expectation for
access to health care, drugs, medical devices, diagnostics, and treatment
will increase as well.
At the Intersection of Challenge and
Opportunity: Marketing
Maximizing opportunities while minimizing the impact of confusion and
chaos requires life science organizations to focus their efforts and
understand their unique value. They also must somehow communicate their
complex offerings in ways that are compelling to prospects and influencers.
That “somehow” is marketing.
As relationships between internal departments are replaced by
relationships between separate but connected businesses, marketing
provides a vital link. Marketing can convey advantages, drive the adoption
of new technology, enable successful competition in a globalized market,
and connect customers with the unique value offered by individual
companies. Marketing can help differentiate your business in a crowded
marketplace.
Surprisingly, there is very little effective marketing in this sector,
particularly business-to-business marketing. Many firms are making
marketing claims that are not unique, not meaningful, and not compelling.
That means that life science firms that get their marketing right have a huge
opportunity to dominate their market space.
For many organizations, however, differences in the worldviews of
marketers and scientists get in the way of getting it correct. And too often
these differences result in marketing decisions that actually impede business
success. The good news is that the two worldviews can coexist, each
profiting from the strengths of the other.
High-performance marketing can help counteract
the increased competition and globalization of the
life science sector.
Granted, getting life science marketing right isn’t the only thing
necessary for success. You also have to have great science, proper
financing, inspired leadership, and motivated employees, among other
things. But this book isn’t about all that; it’s about marketing.
In the next chapter, I’ll examine in detail the differences between the two
worldviews, and consider how marketing can affect audiences so you can
set goals, develop strategies, create high-performance tactics, and
implement your marketing plans–while prospering from it all.
2
MARKETING VERSUS SCIENCE
Fundamental differences in the worldviews of marketers and scientists can
lead to decisions that impede or even derail life science marketing efforts.
Time and again, I’ve seen scientists’ lack of understanding of marketing
leading to poor decisions that cause mediocre, or worse, no results.
This lack of understanding by scientists springs from the scientific world-
view, which respects different behaviors and values than the marketing
worldview. Scientists often distrust marketing because they believe that its
goal is to manipulate behavior–theirs and others–while at the same time
believing that they are immune to marketing’s effects.
Conversely, marketers’ lack of understanding of how scientists view the
world can result in marketing campaigns that fail to resonate with their
intended audience.
Unquestionably, these worldviews give each discipline its power. Science
is great at solving certain types of problems, and marketing is great at
solving other types of problems. But when the scientific worldview is used
to try to solve marketing problems, difficulties ensue.
In this chapter, I’ll dive deeply into the worldviews of science and
marketing to help you understand the differences and bridge the gap
between the two. Let’s begin with science.
The Worldview of Science
To begin this discussion, it is important to agree on the answer to a
seemingly simple question: “What is science?”
The word science is derived from the Latin root scientia, which means
knowledge. There are two common definitions. First, science is a branch of
knowledge or study dealing with a body of facts or truths systematically
arranged and showing the operation of general laws. Second, science is the
systematic knowledge of the physical or material world gained through
observation and experimentation.
The exact definition is not as important as the worldview behind the
definition. Both of these definitions reflect the five major priorities of the
scientific worldview: to comprehend, to describe, to predict, to be complete,
and to be systematic.
The Five Priorities of Science
To Comprehend: Science is the systematic extension of curiosity. “How
does that work?” is a question that goes back to the dawn of time, and
whether the subject of the question is the rising of the sun or the workings
of mRNA, the fundamental quest to comprehend is at the root of science.
To Describe: With the priority of comprehension comes the need to
describe: to be able to explain the answers to those questions located on the
horizon of current knowledge. Without the ability to describe,
comprehension is limited to one individual.
Science begins with the individual scientist, but much of its power comes
from the collective efforts. As Isaac Newton observed, “If I have seen
farther than most, it is because I have stood on the shoulders of giants.”
Without a description that can be passed from one scientist to another, there
are no “shoulders” on which to stand.
To Predict: Prediction is how science tests its ability to comprehend and
describe. Without a refutable prediction, no advance is truly possible. As
Karl Popper (a preeminent philosopher of science) once observed, “A
theory which is not refutable by any conceivable event is non-scientific.
Irrefutability is not a virtue of a theory (as people often think) but a vice.
Every genuine test of a theory is an attempt to falsify it, or refute it.” 1
To Be Complete: The goal of comprehension has a corollary: completeness.
The quest to comprehend and describe a biologic mechanism of action and
then to use that understanding to predict the system’s behavior is only
valuable to the extent that the comprehension, the description, and the
ability to predict is complete. This drive for completeness, for total
understanding, for the ability to describe the system down to the smallest
detail, is built into the discipline of science.
For example, when reviewers submit comments on a proposed
submission to a peer-reviewed journal, they point out the unanswered
questions in the author’s work because they want the author to complete
what they perceive to be an incomplete picture.
Additionally, the regulations that govern much of the drug-development
industry, such as those of the FDA (Food and Drug Administration) and the
EMA (European Medicines Agency), among others, require a large measure
of completeness, and those agencies are not shy about asking for additional
information.
To Be Systematic: A systematic approach is critical in science, as the
discipline seeks to push back the boundaries of the unknown, and essential
to the formulation and posing of increasingly sophisticated questions. A
systematic approach is also necessary to tease out answers and meaning
from a mass of experimental conditions and variables swimming in a sea of
seemingly irrelevant and distracting background noise.
Even with this systematic approach, the answers that do emerge are often
subtle or even misleading and new answers almost always lead to still more
questions. For this reason, scientists’ approach to the question-asking
process must be systematic, because it is only by being systematic that they
can hope to be complete.
These five priorities can be summed up as a belief; scientists value
knowledge. They believe in putting knowledge first. An anecdote will make
this clear. Several years ago, Forma was approached by an organization that
had been started by a scientist on the faculty of a prestigious university. His
goal to comprehend the workings of the cardiovascular system led him to
describe a better system for predicting the likelihood of coronary disease
among certain patient populations.
As these things tend to go, the discovery had moved off of the research
bench and into the business world as a corporation. The company, however,
was having trouble getting traction with physicians (the primary audience).
It approached us with a strictly tactical need that centered on the use of a
particular graph.
This graph summarized the science behind years of work, and the
scientist and his team wanted it to be featured prominently on every
possible marketing touchpoint, including their trade-show booths and
brochures. They even wanted the graph printed on the back of their business
cards! Company leadership believed that telling the story of the graph
would compel their audience to change their attitudes, beliefs, or behaviors
and lead to more sales.
I asked them to tell us the story of the graph. Their reply involved quite a
bit of explanation. In fact, it took more than a half hour to tell the entire
story the first time we heard it. To make matters worse, the details were
presented first.
The story we were told was complete–excruciatingly complete. Once we
understood the graph and all its implications, the meaning began to unfold.
But while the graph summarized the results of the data, it didn’t describe
the mechanism of action. And as we learned through later research,
physicians had to comprehend the mechanism of action before they would
be motivated to change their diagnostic and prescribing behaviors.
The graph was a beautiful thing; it represented deep insight and the
culmination of years of work. It summarized, clearly and systematically, the
nature of cardiovascular risk and used this knowledge to predict risk among
patient populations. But stressing this knowledge in and of itself was not
enough to change behavior. Something more was needed. Something that
was outside the scientific worldview, but at the core of the marketing
worldview.
The Worldview of Marketing
For the sake of symmetry, here is a general definition of marketing.
Marketing is the identification of a need in the marketplace, and the
matching of a product or service to that need at a profit. Again, it is
important to look behind the definition to the priorities of marketing and the
worldview embodied by those priorities.
There are five major priorities in the marketing worldview: to
communicate, to educate, to inspire, to reassure, and to influence. As you
will see, some of these priorities conflict with those of the scientific
worldview.
The Five Priorities of Marketing
To Communicate: Rather than striving for completeness, marketing’s goal
is to communicate clearly. Clear communication should lead to audience
comprehension, which is the first step in influencing someone’s attitudes,
beliefs, or behaviors.
In science, the audience’s ability to comprehend is secondary to the
complete description of the issue at hand. For example, the author of a peer-
reviewed paper cares less about how long it takes his audience to read and
understand the paper than he does about whether the paper is a complete
description of the issues. In contrast, marketing is less focused on
completeness and more focused on clear communication.
To Educate: Marketing has shifted in recent years and one of the major
shifts is the increasing focus on education as a goal of marketing efforts.
This change can be directly connected to the now ubiquitous nature of
information.
In this new role of educator, marketing helps prospects learn about their
situation, needs, and potential solutions. For instance, as I will cover in
chapter five, early in the buying process prospects often are unaware and
either don’t realize, or don’t believe, they have a problem.
In this case, marketing can help these unaware people start to realize that
their life could be better, that problems do exist and solutions are available.
Marketing can also help prospects differentiate between solutions, and draw
clear distinctions so they can accurately judge which offerings are most
appropriate to their situation.
To Inspire: Marketing can help prospects determine that their needs can be
addressed and that their situation can be improved. One of the steps in
doing this is to inspire prospects and help them imagine how their lives
could be better. As in the education step described above, inspiration is one
of the key steps in the buying process.
To Reassure: Marketing can be a source of reassurance, helping prospects
understand that the choices they are making are the right ones. Reassurance
is a crucial step in the buying cycle. Once prospects distinguish between
alternatives, marketing can help them choose a solution and remain
confident that it is right for their situation.
To Influence: The main goal of marketing is to influence attitudes, beliefs,
or behaviors. But those with a cynical view of marketing often think of it
not as influencing attitudes, beliefs, or behaviors, but as manipulating them.
It is this perception of marketing as manipulation that concerns many
people, scientists included, causing them to distrust the whole process and
anyone involved in it. To be sure, some people in marketing have not done
the discipline any favors, especially those who continue to actively boast
about their ability to manipulate unwilling audiences!
Marketing does have influence, however, and it can be surprisingly
powerful. Given this fact, it is all the more important for science to
understand marketing and to be able to harness its power to communicate,
educate, inspire, reassure, and influence its audience.
Rather than putting knowledge first, marketing’s overarching priority is
to serve the needs of its audiences. In marketing, the audience, rather than
knowledge, comes first.
Marketing and Science Have Different
Goals
Nearly all scientists would scoff at the notion that marketing is a science.
While great strides have been made in describing human behavior in the
marketplace, the general laws of human behavior are not really laws, at
least not in the same way that the laws of genetics are laws. Human
behavior is not universal, and observation and experimentation in the
marketing sphere doesn’t always yield strictly reproducible results.
Some marketing experts disagree and would claim that marketing is a
science, in the sense that there are theories that can be postulated and then
tested via observation and experiment.
Rather than attempt to referee this rather pointless argument, I’ll point
out that arguing whether marketing is a science or not really misses the
point, which is that marketing and science have very distinct fundamental
goals that derive from their different world-views. Science seeks to
understand. Marketing seeks to be understood. Science seeks to
comprehend, describe, and predict while being systematic and complete,
and marketing seeks to communicate clearly, educate, inspire, reassure, and
influence.
Science seeks to understand and puts knowledge
first; marketing seeks to be understood and puts
the audience first.
Science aims to communicate, but places the onus of understanding on
the audience. Conversely, marketing seeks to communicate clearly and so
assumes the responsibility for ensuring that audiences can easily
comprehend its message.
These two worldviews are very different. And misunderstandings
between each discipline’s practitioners have encouraged a sense of
opposition–hence the title of this chapter. But I believe this sense of
opposition is ill founded; science and marketing must coexist, and an
understanding of the strengths and weaknesses of both worldviews is the
place to begin.
The Graph’s Hidden Story
Remember the graph that summarized years of results from studying
cardiovascular risk? While the graph described the nature of risk among
patient populations completely, a quick look at the company’s profit and
loss statement was proof enough that the complete story was not especially
effective at influencing anyone to change their behavior (that is, buy the
product). What was missing? A focus on clear communication to the
audience.
By telling the story in a way that took a long time, that focused on the
small details, and that was complete, this company was putting the
scientific knowledge first, treating communication with the audience as it
would treat communication in a peer-reviewed journal article. This
approach would be valid if physicians changed their attitudes, beliefs, or
behaviors only when presented with complete, detailed, peer-reviewed data.
But this is not the case.
To put clear communication with the audience first (rather than the
complete depiction of knowledge) required telling the story of the graph in
a different way. And once we did so, sales accelerated. The organization’s
sales exceeded the established goals, something that hadn’t happened in
four years.
A Science and Marketing Worldview
Matrix
To summarize, marketing and science have different worldviews. To market
scientifically based products and services to technically trained audiences,
you have to understand the similarities and differences. The differences can
cause a series of fundamental problems that, left unchecked, will impede
and even neutralize the effectiveness of your marketing. This table offers a
quick comparison of the two worldviews.
FOR THE DISCIPLINE
OF . . .
SCIENCE MARKETING
The general goal is to . . . Comprehend Communicate
So that its practitioners can .
. .
Describe and
predict
Influence attitudes, beliefs,
or behaviors
In one word, this discipline
wants to be . . .
Complete Compelling
So the focus is typically on
the . . .
Details Big picture
And the communication is . . . Thorough A summary
1 Karl Popper, Conjectures and Refutations (London: Rutledge and Keagan
Paul, 1963), 33-39.
3
THE MYTH OF MARKETING
IMMUNITY
“I Don’t Look at Logos”
For some research Forma conducted on behalf of a client, we recruited
several groups of research scientists who were using a particular class of lab
products. We were interested in their responses to the general marketing
efforts of the competitors in this market segment, and to the marketing
efforts of our client in particular.
One question involved testing for brand awareness, specifically corporate
symbols, to which one focus group member responded, “No, I do not look
at logos.” Several other members of the group immediately seconded her
statement.
Now, if you walk into any lab, you’ll find corporate trademarks on just
about every item in the place. From the pipettes to the chromatographs to
the cover of the lab notebooks to the back of the Post-it notepads, corporate
trademarks are everywhere. It is impossible not to look at corporate
trademarks, so it’s hard to believe that this respondent meant exactly what
she said: “I do not look at logos.” What she probably meant to convey was
something like this: “While there may be lots of logos around, I can and do
ignore them.”
After further discussion, it became clear that this respondent felt that the
marketing efforts of this product segment just did not affect her. She
thought she was immune to marketing. Many other respondents (both male
and female) expressed the same sentiment, and their comments made it
clear that they had a generally negative impression of marketing.
Now, scientists are not alone in believing they are immune to marketing
efforts. This sentiment is shared by a wide section of the general population.
But through my experience, I’ve discovered that many scientists believe
they possess particularly strong immunity. Those scientists feel that the
rational thought processes embedded in their discipline confers some sort of
extra special protection against the “insidious and generally negative”
nature of marketing.
As you’ll see shortly, some recently published, peer-reviewed research
proves that marketing immunity is a myth.
Marketers and Audiences Escalate the
Situation
I believe that the idea of immunity to marketing is as ludicrous as the idea
of immunity to the effects of atmospheric pressure or capitalism. Marketing
is part of the structure of our society. We all come in contact with marketing
messages every day.
Despite their prevalence (or maybe because of it), we have learned to pay
very little conscious attention to these messages. We experience most of
them as annoying petitions–poking us, prodding us, banging away to attract
our attention. And we get tired of being bothered all the time, so we develop
thick “mental calluses.”
We have become so adept at tuning out marketing that marketers have
learned that to get our attention they have to “poke” harder. They poke and
prod harder; we develop thicker calluses. We develop thicker calluses; they
have to poke and prod even harder–an escalating cycle.
Back in the days of only three television networks, marketing could work
by interrupting people (it’s still called a commercial break after all). And
interrupting still works, to some extent, doesn’t it? Who isn’t annoyed by
those flashing banner ads at the top of web pages? But if you are like most
people, you can’t help but read some of them, even as annoying as they are.
Thus, interrupting still works on occasion.
Escalation Results in Sophistication
Because we don’t like interruptions, we develop sophisticated filters that
distinguish between useful information and what we consider to be noise.
And in response, the marketers vying for our attention develop more
sophisticated methods of attracting attention. And then these methods end
up training the audiences to become ever more selective in what they pay
attention to. It is a continuing struggle: marketers want the attention of the
audiences, and the audiences don’t want their attention hijacked.
To get a glimpse of how far this war for attention has come, look back at
some of the advertisements in magazines from the 1930s. For example, an
ad for ordinary yeast declared, “‘Tired out, run down persons become
completely changed,’ says physician of Germany’s greatest free hospital.”
This language and the claim itself feels quaint and, in many ways, naïve. In
the intervening decades, as the audience members (and their filters) have
become more sophisticated, the marketing efforts required to reach
audiences have also become more sophisticated.
Clear evidence of marketing sophistication was seen in the discussion
with the participants of the focus group I mentioned earlier. Their ability to
decode visual messages was extremely fine-tuned, and this ability was
shared by every scientist in the group.
To give just one example, despite the statement that they “do not look at
logos,” the respondents had a fascinating discussion about which of the
several corporate trademarks from key competitors looked the most out of
date.
They could read significant meaning into the choice of colors. They could
decode meanings in images and shapes. They could apply this sophisticated
visual processing to ads, catalog covers, corporate trademarks, websites,
and brochures. They were drawn to certain messages and designs, and were
uninterested, or even repulsed, by others. Whether or not they consciously
paid attention, these scientists were sophisticated consumers of marketing
messages.
The culture these scientists grew up in, so dominated by visual
communication, had taught them very sophisticated skills in seeing and
consuming this same visual communication. Yet these same life science
researchers were convinced they could control their own responses to these
marketing messages.
The Myth of Immunity
Recent research 1 shows that marketing messages have clear effects outside
of our control. In fact, you don’t even have to consciously register
marketing messages to be affected by them in profound ways. Researchers
at Duke University and the University of Waterloo in Ontario, Canada,
found that exposure to brands changed the behavior of the viewer. This
effect extends beyond purchase behavior. The most amazing thing about
this change in behavior was that it was triggered by subliminal messages.
That is, the viewer did not have to consciously register the stimulus to
exhibit the change in behavior.
The research was conducted like this: Subjects were given a standardized
test that measured their ability on a particular trait. In this case, the traits
being measured were honesty or creativity. The subjects were also
questioned about several corporate trademarks. One set of corporate
trademarks was associated with the particular character trait being
measured, either honesty or creativity; the others had different character
traits, but were neutral with respect to the traits being measured.
Subjects were then divided into two groups and shown a series of
numbers, one at a time, in sequence. They were asked to keep a running
sum. Interspersed among the numbers were corporate trademarks from one
of two companies. These corporate trademarks were purposely shown too
quickly to be consciously registered. In fact, in subsequent questioning, no
respondents reported seeing any images amid the number sequence.
Upon completion of the running sum, the participants were tested for an
increase in behaviors related to the personality trait. The results were
significant: Participants subliminally exposed to the corporate trademarks of
a brand associated with creativity exhibited more creative behavior (on a
double blind test designed to measure such behavior) than participants
exposed to the corporate trademarks of a brand not associated with
creativity. Similarly, participants subliminally exposed to corporate
trademarks of a brand they associated with honesty, displayed more honesty
in subsequent tests than did participants exposed to corporate trademarks
that had no such connotation.
The subliminal presence of the corporate trademarks changed
participants’ behavior, and the effects were present even when the subjects
were completely unaware of the presence of any marketing message
whatsoever.
In the words of the researchers, “Brand exposure can shape nonconscious
behavior.” The authors conclude, “Participants responded to brands by
behaving in line with the brand’s characteristics, and did so with no
conscious awareness of the influence.” So, even those who believe that a
rational world-view grants them immunity can be profoundly affected by
marketing.
How does this apply to life science marketing, which typically involves
selling sophisticated products or services to technically sophisticated
audiences? There are two key implications:
No One Is Immune to Marketing: The authors of the research state, “ . . .
we believe consumers are unlikely to have the ability to successfully guard
against brand-influence, given the capacity such efforts would require and
the fact that much of brand-influence likely flies under the radar of
consumer attention.”
Marketing Cannot Manipulate People into Doing Anything: While no one
is immune to marketing, no one can be unconsciously manipulated into
doing something they don’t want to do either.
The research I’m referring to doesn’t prove this statement, but the
researchers found that the effect on behavior is strongest when the audience
values the characteristics embedded in the brand image. When the audience
does not value, or does not possess a “chronic motivation” to exhibit the
characteristics embedded in the brand, there will be little or no effect. Their
conclusion: “It is not thought to be possible to create a new motivated state”
via brand exposure. In other words, the fears of marketing’s ability to
manipulate people into doing something they would not otherwise want to
do are unfounded.
Peer-reviewed research has shown that no one is
immune to marketing.
The ability to influence attitudes, beliefs, or behaviors, however, is one of
the many reasons that marketing has a powerful place in business. Granted,
marketing alone may not be sufficient, but it is certainly necessary.
No great company has ever succeeded without paying close attention to
marketing, and this is true whether your audience has a rational worldview
or not. But while marketing’s strategic importance should not be doubted,
the tactics you use in your marketing do indeed depend upon whether your
audience has a rational worldview or not.
Marketing Does Matter
The bottom line is that marketing does matter. How much?
Remember the story of the company that came to us with a graph? Well,
when we began helping that company, they hadn’t achieved their sales goals
in four years. We developed a clear marketing strategy and some fairly
standard marketing tactics, and focused on communicating clearly to their
audience first and foremost. By understanding marketing and putting their
audience–rather than knowledge–first, the company was able to achieve
(and even exceed) their sales goals.
Marketing is powerful. It can help you bridge the gap between your great
science and your business-related goals. To get the most out of marketing,
however, you must understand its power, its limitations, its priorities, and its
worldview and how all these can be used to drive your commercial success.
Failure to do so results in low-performance marketing. In the next
chapter, I’ll examine how making undifferentiated claims impedes your
ability to promote your organization and its products and services. You’ll
see how unique claims enable an organization to be perceived as truly
different and therefore valuable; differentiation is at the very heart of high-
performance marketing.
1 Grainne M. Fitzsimons, Tanya L. Chartrand, and Gavan J. Fitzsimons,
“Automatic Effects of Brand Exposure on Motivated Behavior: How Apple
Makes You “Think Different,” Journal of Consumer Research 35 (June
2008): 21-35.
4
THE TRAGEDY OF
UNDIFFERENTIATED CLAIMS
The following language is quoted from the websites of various companies
all serving the same (or closely related) life science sector. The names have
been changed so these companies remain anonymous.
Based on our experience and expertise, Company W will provide
faster results of your high-quality sequencing at very affordable
prices.
There is some additional language on the home page, but the quotation
above obviously represents this company’s core claim. Here’s another, from
a different site:
Company X is synonymous with scientific excellence and high
standards as we continue to provide our customers with industry-
leading service quality . . . Company X takes great pride in
consistently providing high-quality results with fast turnaround
times; meeting and frequently surpassing our client’s stringent
requirements.
And another:
Our commitment to operational excellence allows us to quickly
and securely deliver the highest-quality results to our clients. We
are an extension of our client’s laboratory by providing
outsourcing solutions with the quality and trust expected from an
in-house provider.
And another:
With competitive pricing, reliable service, and high quality, and
attentive care to our customers always on our minds, we strive to
provide only the best, while always seeking ways for
improvement.
The Need for Differentiation
Marketing is the identification of a need in the marketplace, and the
matching of a product or service to that need at a profit. The examples
quoted above all show that a need has been identified. It should be easy to
figure out that the need used in this example is genetic sequencing. So, half
of the definition of marketing (identifying a market need) has been fulfilled.
What about the other half: helping customers address (buy) a solution for
the identified need? Here is the tragedy: these claims do not help customers
accomplish the purchase of a solution at all and so are a waste of the time
and precious attention of the audience.
Let’s look at these claims in detail, by translating them into plain English:
“Based on our experience and expertise, Company W will provide faster
results of your high-quality sequencing at very affordable prices.” In other
words: “We have experience and expertise. We are quick. We provide high-
quality results. We are very affordable (cheap).”
Think for a minute about this firm’s competitors. Would any firms claim
that they do not have experience and expertise? Would any claim that they
are not quick? Would any claim that they do not have high quality? Would
any claim that they are not affordable? No. All will claim that they have
experience and expertise, that they are quick, that they provide quality
services, and that they are affordable. So, all of the firm’s competitors will
make the same claims.
Claims that do not differentiate your organization, your service, or your
product are meaningless, ineffective, and a waste of time for both you and
your audiences.
“But wait,” you may protest, “not all of those firms will be providing
products or services of equal quality. Some will be superior to others.” That
is exactly right. In fact, given enough firms in the marketplace, there will be
a bell-shaped curve describing the variation in quality of products or
services, with a few firms providing very high quality, a few firms very low,
and the majority somewhere in the middle.
Figure 1. Despite a normal distribution of the quality of the product or
service, all companies, if asked, will claim that they provide high quality.
Claims that are not verifiable before a purchase are undifferentiating and
actually create buying resistance.
Imagine that a potential customer with money to spend asked any of
these firms the following question: “I am ready to buy, and I will only work
with a firm that can provide high quality. Do you provide high quality?”
Every single firm would say yes. Even those firms on the low end of the
bell curve would say yes. Whether they believe the statement or not is not
the issue, nor is the quality of their products or services. The fact is all firms
will claim that they provide high quality.
So, if all firms make this identical claim, how does this claim distinguish
one firm from any other? Answer? It doesn’t.
Spend a few minutes browsing the websites of CROs, preclinical labs,
CMOs, formulation labs, management consultants, qPCR suppliers, flow
cytometers–just to name a few examples–and you will find many claims
that are not differentiating and thus cannot be effective.
»
»
While this problem is more pronounced for service providers than it is for
companies that sell products, there are many examples that can be found in
product-oriented companies as well.
Ironically, many of the sectors with the most blatant examples of
undifferentiating–and therefore ineffective–claims are sectors where the
governing regulatory bodies (e.g., the FDA) do not regulate marketing
claims.
For example, Forma worked with a lab whose marketing claims were not
regulated by the FDA. The organization’s leadership could not bring
themselves to select a single set of differentiators. At each stage of the
project, the leadership would argue among themselves, ultimately changing
their decision about “what makes us different,” despite evidence from
market research. This new direction would invalidate all work done
previously. Without agreed-upon and stable differentiation, no budget,
however large, could make their marketing effective.
High-performance marketing highlights your
offering’s unique value and thereby attracts
audiences.
High-performance marketing must be based on truly differentiating
claims. This makes it easy for prospects to choose your offering over the
offerings of others by showing them that your firm is indeed different,
distinct, even unique.
High-performance marketing is achieved through a four-step process:
First, you identify the differences between you and “those other
guys,” which results in an effective position.
Second, you articulate these differences clearly–that is, you
communicate these claims of distinction in (verbal and visual)
language that your audiences understand.
»
»
Third, you test these claims to ensure that they are effective and
defensible.
Fourth, you express (or promote) these claims through various
channels, executing the tactics of your marketing plan.
Do all of this correctly, and people will raise their hands and step out of
the anonymity of the Internet to have a sales conversation.
But they won’t raise their hands for just any claim. For example, one
insurance salesman might have red hair, but identifying, articulating,
testing, and expressing this distinction doesn’t really help draw customers to
the firm or prompt them to buy, because when it comes to purchasing
insurance, the audience just doesn’t care about hair color–this claim is not
important or compelling.
It is crucial to make claims that actually distinguish your organization
and are important, believable, and compelling to your audiences. This
sounds simple, but judging from the claims typically made in the life
sciences, it isn’t that easy to accomplish. Many life science organizations
simply do not understand how marketing actually works. As a result, untold
amounts of time, resources, and attention are wasted without achieving any
of the results that high-performance marketing can produce.
To create high-performance marketing, you must first understand how
people buy. Let’s explore that process now.
5
HOW PEOPLE (REALLY) BUY
There is a great deal of misconception about buying, but because of its
importance to corporate success few subjects have been written about more
intensely. And in this case, the buying experiences I am talking about are
not retail purchase decisions for negligible amounts (“Hmm, do I really
want to buy that soda?”). The discussion here addresses large-ticket items
purchased through a long sales cycle and assisted (i.e., mediated) by a
salesperson.
Much of the current literature on this topic focuses on the reasons for
buying, and looks at motivating the sale through a variety of factors, such as
deprivation, obligation, fear, or temptation (to name just a few). This focus
requires a deep understanding of the psychological makeup of the buyer.
Today, buyers can remain unidentified right up until the last minute, thanks
to the prevalence and quantity of free information, which allows them to
compare offerings anonymously. So while probing the psychological
makeup of the buyers may be helpful once they abandon their anonymity,
marketing frequently does not have this luxury.
For this reason, it is useful to look at buying from another perspective,
not one of psychological manipulation of the buyers, but one of supporting
the buyers as they progress through the buying cycle. To do this, you need
to look at buying behavior from a slightly different viewpoint; you need to
view it through the lens of change.
Buying is an experience that requires people to commit to change
(though they may not think of it that way consciously). People (your
customers) commit to pay you money for something that they believe will
provide the benefits they desire. In doing so, they are committing to a
change of some kind.
Buying is a commitment to change.
As I’ve already mentioned, the motivation to change (to buy something
from you) can occur for a number of reasons, including inspiration,
deprivation, obligation, education, or temptation. Whatever the
psychological reason for change, researchers have shown that all people
undergoing change progress through distinct stages.
Prochaska’s Transtheoretical Model of
Change
There are many models of behavioral change, but the one that translates
most directly to purchase behavior is Prochaska’s transtheoretical model of
change.1
Prochaska’s model reinforces the idea that salespeople can’t force anyone
to buy something, but they can help make it easier for people who are ready
to buy (or to progress from one stage to another in the buying cycle) to take
the steps (make the changes) necessary to do so. In this model, the
motivation to buy is defined as a state of readiness to move from one stage
of change to another. The Prochaska model offers a predictable pathway for
behavioral change.
Understanding the pathway of purchase behavior enables you to
effectively assist your buyers in progressing from one stage to the next by
helping you understand how much you need to communicate with them,
when you need to communicate with them, and what type of
communication they need.
Stage One: Precontemplation
Individuals in the precontemplation stage (those who are unaware) deny
that there is the need for change and therefore have no intention to commit
to change in the near (or even distant) future. At this point, they resist
change.
A prospect in this stage might be content with the current situation or
might be in denial about the need for change: “We don’t need a new peptide
synthesizer; the solution we have works just fine.”
Stage Two: Contemplation (Research)
Individuals in the contemplation stage (i.e., researchers) acknowledge that
there is an issue and begin to contemplate the need for change. They
wonder about possible solutions, and seek information about these
solutions.
Figure 2. In Prochaska’s model, there are six stages to permanent change:
precontemplation, contemplation, preparation, action, maintenance, and
termination. To affect people’s purchasing behavior, you have to know what
stage they are in.
During this stage, there is still little overt commitment, and individuals can
remain in this stage for quite some time.
A prospect in this stage will begin to research information about
alternatives: “The increase in demand is starting to overwhelm our
equipment. I wonder if there is a faster machine out there, and what a new
one would cost?”
Stage Three: Preparation (Evaluation)
Individuals in the preparation stage (i.e., evaluators) plan to take action in
the near future. There are increasing signs of commitment, including a shift
from focusing on the past to focusing on the future and a shift from
focusing on the problem to focusing on the solution. This is the evaluation
phase, during which the individual is figuring out how to solve his or her
problem. This is the stage in which a goal is selected. The preparation stage
can be brief, as momentum builds quickly toward the next stage, which is
action.
A prospect in the preparation stage will start to develop goals and a plan
for action: “I’ve allocated time to visit the websites of the top three
suppliers, and my goal is to talk to these companies before we have our next
budget meeting.”
Stage Four: Action (Purchasing)
Individuals in the action stage (i.e., purchasers) exhibit the most overt
change in their behaviors. As the action stage is the one in which
commitments are made, this is the stage in which most sales efforts (and
sales training) are focused. However, individuals at the preceding stages
also need support, and providing this support can increase the number of
individuals who ultimately do take action.
A prospect in the action stage will have resources assigned to the project
and will be actively involved in addressing any problems that arise: “We are
ready to buy, but we have a concern about the terms of the contract.”
Stage Five: Sold (Maintenance)
Change does not end with action; otherwise, the first trip to the gym after a
commitment made on New Year’s Eve would be sufficient to ensure
attendance all year long. The commitment must be maintained, and any
lapses must be addressed. The legal system even takes this stage into
account when it specifies a time during which “buyer’s remorse” may cause
an individual to change his or her mind without legal penalty.
A prospect at this stage will sign a contract and be involved in the post-
sale details: “Delivery and setup will be on the 14th, and training will start
on the 15th.”
Stage Six: Advocacy (Termination)
This final stage is the goal for the change process; at this point the change is
permanent.
A prospect in the termination stage will be committed to the change:
“The purchase addresses my needs so well that I’ll only use this supplier in
the future.”
Marketing and the Stages of Change
People in the first stage (precontemplation) are not important targets for
marketers. After all, these people don’t recognize that they have a problem.
And the last two stages (maintenance and termination) are less important
for marketing, because at this point the purchase has been made. So for
most of the rest of this book I’ll focus on stages two, three, and four:
contemplation (researchers), planning (evaluators), and action (purchasers).
To successfully influence prospects’ purchasing behavior, you need to
know what stage they are in on the continuum of change. What people need
to help them move forward varies depending on the stage they are in.
Illustrating the Model
Now that you understand the basics of the Prochaska model, let’s examine it
to see how it applies to a real-world example. Let’s begin with your own
experience; I’ll use a major purchase, such as buying a car, to see how valid
this model, which equates buying with change, might be.
Are you currently in the market for a new car? Are you thinking about
buying one? If you are like most people, the answer is no. You are
reasonably content with the car you currently own. Given this attitude–“I’m
not interested; don’t bother me”–what stage are you in? You are in stage
one (precontemplation). At this stage, you might be interested in some
general educational material about cars, but you are definitely not
interested in any sales-related material.
But maybe your car is getting a little old. At this point, you might start to
notice new cars. You might find yourself paying attention to ads or noticing
cars on the street. At this point, you have no commitment to change; you are
in stage two (contemplation). You can stay in stage two for quite a while,
years in fact. To move to the next stage, you need inspiration. This
inspiration might come from a trip to your mechanic (“Oh no, I need a new
transmission”), or it might come from reading a review in an online forum,
or seeing a neighbor drive by in a new car.
If you are actively in the market for a new car, you are in stage three
(preparation) or stage four (action). At these stages, you are actively
planning for a new car, and you seek reassurance. Most buyers at this stage
will be comparing specifications, such as warranties, horsepower, etc., to
ensure they minimize their chances of making a mistake.
If you are like most of the hundreds of people to whom I have lectured
over the years, you’ve found yourself in one of the stages I’ve just
described at some point. You’ve seen that the model aligns with how you
last bought a car. Buying is a commitment to change.
Figure 3. To assist prospects in moving thro ugh the buying cycle, educate
early, then inspire, and, finally, reassure. Make communication short and
sweet early, and more complete later.
What Is Needed at Each Stage of the Buying
Process?
Prospects in the early and middle stages of change (precontemplation and
contemplation) need to increase their perception of the positive aspects of
changing. Increasing the perceived positive aspects of change (that is,
increasing the pros, rather than decreasing the cons) can help inspire people
to believe that change (and the resulting benefits) are both possible and
worth the effort. Prospects in the later stages of change (preparation and
action) need to decrease their perception of the negative aspects of
changing. Reducing the perceived negative aspects of change (that is,
decreasing the cons rather than increasing the pros) provides the
reassurance they need to feel comfortable moving forward, knowing that
they are on the right track.
The unaware (those in precontemplation) need education. Educational
communication should be strictly educational, with no sales “flavor.”
Researchers (those in contemplation) need inspiration. Inspirational
communication should focus on the benefits of purchasing, communicating
with only a few details. Evaluators and buyers (those in planning and
purchasing) need reassurance. Communications designed to reassure will
need to be more complete than communications designed to inspire. Late-
stage buyers need more details, so longer communication is appropriate
with them. You will want to focus communications on how the benefits will
be delivered or achieved.
Early stage prospects (the unaware in
precontemplation) need education. Middle-stage
prospects (researchers in contemplation) need
inspiration. Late-stage prospects (evaluators in
preparation and purchasers in action) need
reassurance.
The Value of Understanding How People
Buy
Prochaska’s model provides quite a bit of valuable guidance that should
inform your marketing efforts. First, buyers progress through several
discrete stages on the way to a final purchase. At each stage, their actions
vary and you can determine what stage they occupy by behavioral clues,
such as the types of questions they ask. At each stage, they need different
types of information, and the purpose of communicating with them is
different.
The type of support you offer your prospects must differ depending upon
the stage of the buying cycle they currently occupy. The unaware need
education. Researchers need inspiration. Evaluators and purchasers need
reassurance.
Now that you understand how people buy and the types of support they
need, I’ll examine the process by which high-performance marketing
produces changes in audiences’ attitudes, beliefs, or behaviors: the
marketing mechanism of action (MMOA).
1 James O. Prochaska, PhD, et al., Changing for Good (New York: William
Morrow, 1994). Blair Enns of Win Without Pitching brought this model for
change to my attention.
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6
THE MARKETING MECHANISM
OF ACTION (MMOA)
To describe the framework and various components of marketing and how
they function together, I’ve borrowed a term from pharmacokinetics: the
mechanism of action.
In pharmacology, the mechanism of action is the specific interaction
through which a drug produces its biological effect. Following this analogy,
the marketing mechanism of action (MMOA) is the specific chain of
interactions through which marketing produces changes in audiences’
attitudes, beliefs, or behaviors. The MMOA occurs within a framework
composed of five key components:
Organization
Brand-story
Touchpoints
Audiences
Environment
Let’s take a look at each one in detail.
Organization
At the center of each organization’s universe are its mission, vision, values,
and objectives. These beliefs are typically expressed through a strategic
plan intended to inform and guide the organization’s actions and purpose
and (hopefully) its public-facing communications.
Internal alignment of these strategic elements within the organization
provides consistency vital to the plan’s success. But to achieve success,
something else is needed to complete the picture. In addition to a strategic
plan– and optimally, as part of it–there must also be clear differentiation
between your organization’s products and services and those of your
competitors. Without differentiation, your organization and its offerings will
be perceived as a commodity, which means there will be only a few ways
for you to compete–for example, on price (read: lowest), on delivery (read:
fastest), or on a few other attributes.
Figure 4. The five sections of the MMOA are organized in concentric rings,
orbits if you will, that start with your organization at the center and expand
all the way out to your environment. Please note that the concentric circles
could be centered at any stage of this diagram; for purposes of clarity they
are centered on the organization.
Successful differentiation–carefully chosen, clearly defined, and
embedded throughout the entire MMOA–creates a unique space in the
minds of your audiences, a space that they associate only with you. The
process of creating this unique space is called positioning.
If your position is the defined, unique space you decide to occupy in the
minds of your audiences, then the space you currently occupy there is your
image. It’s important to understand the difference. The position is a choice
you make; it represents the perception you want your audiences to have of
you. The image is the perception the audiences actually have of you. The
position you select may or may not match your current image. In other
words, what you want to be known for may not be what you are known for
now. If that’s the case, don’t despair. There are many reasons for this and
many ways to address it. But in every case, successful positioning leads to a
clear, unique image, one that will influence your audiences’ attitudes,
beliefs, or behaviors.
Successful, proper positioning and internal alignment (consistency)
provide the essential foundation for all high-performance marketing.
Brand-Story
Immediately outside the organizational center of your marketing universe is
the next ring: that of the brand-story. Marketers are fond of buzzwords, and
few words have as many different meanings as brand. One of the problems
with the term is that one of the most common meanings refers to the visual
representation of the company, such as your logo, corporate signature, or
trademark. This means that rather than representing the entire public face of
the organization, the word brand has come to represent only the
organization’s visual component. And to make matters more confusing,
some marketers are abandoning the term brand for other terms, such as
narrative or story.
There are many meanings of the word brand, and I’ll clarify the three
main definitions in chapter nine. For now, I’ll use the term brand-story to
refer to your organization’s unique verbal and visual representations–the
core of its public face. I’m using this term to ensure that you think about
more than just the visual part of your marketing.
To be successful, marketers must control their brand-story, ensuring that
it aligns with the mission, vision, values, and objectives of the organization.
The brand-story must articulate the position of the organization.
Touchpoints
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Touchpoints are those places where your audiences come into contact with
your organization in any form (such as your brand-story)–where they touch.
Touchpoints are avenues for your audiences to learn about your position
and your brand-story; to be educated, inspired, or reassured by your
organization. In fact, touchpoints by definition are the only way an audience
can learn about your brand-story.
A touchpoint can be something obvious, such as an ad, a website, or a
trade-show booth. But the places where you and your audiences touch can
also be more subtle–for example, an invoice, the packaging of the
disposable portion of your product, the instruction manual, a casual
conversation with a salesperson on the floor of a trade show, even a mention
of your organization on a social media site such as LinkedIn. All are
touchpoints.
Each of your organization’s touchpoints convey a message, however
subtle, about your organization and your brand-story. Thus, each also is an
opportunity to influence your audiences. Touchpoints can be divided into
four basic categories:
Earned exposure
Content marketing
Paid exposure
Personal interactions
Since each and every touchpoint is an opportunity to influence your
audiences, to be successful your brand-story–which articulates your
position– must be expressed consistently across all of your touchpoints. In
other words, all of your messaging as well as your visual appearance must
be consistent and clearly related–otherwise you risk confusing your
audiences. Without consistency, you’ll lose out on the cumulative effect that
occurs as touch-points reinforce each other, combining to shape your
desired image in the minds of your audiences.
Audiences
You may have noticed that I have been using the word audiences (plural)
rather than audience (singular). I say audiences because you actually have
many different types of audiences besides your customers. And they all are
bombarded by marketing messages from you and your competitors.
Your customers, while important, are only a small segment of the people
who will come in contact with your brand-story. And customers also are
only a small segment of the people who will play an important role in your
brand-story’s success.
In addition to your customers, you are also communicating with your
potential customers. And let’s not forget your investors and potential
investors, your suppliers and potential suppliers, your employees and
potential employees, the media, the regulatory agencies, and even the postal
carrier and other delivery people, the janitorial staff, and any other people
who happen to come in contact with your brand-story.
But that’s not all. There also is a large set of digital entities that are
paying attention to your touchpoints, such as the search engines that send
out “spiders” to “crawl” across your website, analyzing and interpreting
your digital presence. Taken all together, these many groups form the
audiences for your organization. Some will obviously generate more
revenue than others. The key is to remember that you don’t have just one
audience; you have many audiences.
Now, audiences is not the perfect word, because it implies that all these
different groups are sitting quietly in their seats, waiting for you to say
something. Of course, nothing could be further from the truth. The analogy
works better if you envision them as a collection of middle-school students.
They are all busy, chattering away among themselves or looking out the
window, focused on any other subject than you. They have their own
concerns. Getting their attention is not always simple or easy; holding it can
be even more difficult.
So, once you realize that many audience groups will come in contact with
your brand-story, you must craft high-performance marketing to address
most, if not all, of these groups. Ignoring any group, whether primary,
secondary, or even tertiary, depending on their potential role in your
success, could prove disastrous.
For example, early stage life science companies that are dependent on
venture funding cannot focus only on customers while ignoring investors,
or the media, or the regulatory agencies, or employees, as all these
audiences ultimately will play a key part in the company’s success.
To be successful, marketers must understand the diverse needs of each of
their audiences, and have a systematic process of communicating with them
and obtaining feedback from them.
Environment
The outermost ring of the MMOA is the environment within which your
audiences work–their business sectors. As part of the environment, there are
many other factors that will play a role in the success of your marketing
efforts, such as competitors, social influences, market trends, economic
influences (from the sector and from the overall world economy),
technological changes, and the regulations that govern the industry–just to
name a few. Each can affect the success of your marketing and the business
success of your organization.
To prosper, marketers must navigate changing environmental conditions
while staying consistent in their brand-story as they attempt to educate,
inspire, and reassure their audiences.
The MMOA in Action
Let’s recall the stated marketing goal–to influence audiences’ attitudes,
beliefs, or behaviors in a certain way. To achieve this goal, you activate the
MMOA, which works like this: Your organization’s position is articulated
in your brand-story, which is expressed through multiple touchpoints. The
impressions from all these touchpoints are combined and distilled by the
audiences to create a specific image in their minds. This image can
influence the audiences’ attitudes, beliefs, or behaviors, which also are
affected by their environment (including competitors).
This seems simple, doesn’t it? It is, in theory. Start by picking a position.
Articulate this position in your brand-story. Express your brand-story in
your touchpoints. And finally, measure the images created in the minds of
your audiences. Simple and straightforward.
The reality of marketing is more complex. Successful, high-performance
marketing requires careful consideration of each of the components of the
MMOA. The proper position must be carefully chosen, considering the
fundamental values and vision of your organization, the business
environment, and your competitors’ positions. Your position must meet
seven key criteria to be effective (more information on this will appear in
the next chapter).
The Marketing Mechanism of Action (MMOA) is
the specific chain of interactions through which
high performance marketing produces changes in
your audiences’ attitudes, beliefs, or behaviors.
Your brand-story must then express your chosen position clearly and
succinctly. Your touchpoints must articulate your brand-story clearly and
consistently, while making it accessible and compelling to your audiences.
Your audiences’ attitudes, beliefs, or behaviors should be measured and the
knowledge gained should be used to modify some (or all) of the previous
activities in the MMOA.
A Caveat
The MMOA does not describe the mental processes by which audience
members change their internal attitudes, beliefs, or behaviors when coming
in contact with one or more touchpoints. Such a description would venture
well past marketing into discussions of psychology, personality, and other
behavioral sciences.
Figure 5. The MMOA begins with a carefully selected position, which
must be clearly and carefully articulated in your brand-story. Your
touchpoints must then express your brand-story consistently. The audiences
will end up with an image in their minds, and if you’ve managed this
process carefully, this image will match your chosen position.
But you don’t need to understand these subjects to find the MMOA
useful. Let’s look at this from the audiences’ point of view. When audiences
look at you, or more specifically, when they look at or listen to your touch-
points–which express your brand-story, which articulates your position–
they are looking for clues to help them decide what to think about you and
your offering. They want to know how to classify you mentally. “Is this
organization worth paying attention to or not?” and “Are they different, and
if so, how?”
Understanding how the MMOA works enables you to influence the
answers to these questions, but only if you harness the power of the MMOA
by getting the following aspects of your marketing lined up correctly.
First, proper positioning is vital. If you don’t choose a position that meets
the seven fundamental criteria (clear, unique, authentic, sustainable,
important, believable, and compelling–as I’ll cover in the next chapter),
your marketing will always be hamstrung.
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Second, this position must be clearly articulated in your brand-story.
Without clear articulation, your audiences won’t understand what you are
trying to tell them.
Third, each and every touchpoint must express your brand-story
consistently. This is particularly important for employees; each must
understand the position of the organization and how it is articulated in the
brand-story. Without consistency, your audiences will be confused.
Fourth, you must understand your audiences, and what they find
important, believable, and compelling. Ignoring one or more audience
groups could threaten your ultimate success.
Fifth, you must understand your environment, and keep up to date on the
many factors that can change your competitive landscape, such as
regulatory issues, technological trends, and competitive behavior.
An Example
To illustrate the MMOA in action, it may help to examine how it works via
the story of a fictitious life science company, SpeedyTech Corporation.
SpeedyTech is the developer of equipment that helps research scientists
conduct experiments in the lab. It has invented a breakthrough technology
that enables its equipment to deliver results in half the time–a huge
competitive advantage. The company dubs this technology the Frequency
Analyzing Spectrum Test, which has a convenient acronym: FAST. It
carefully crafts a position, which I’ll summarize as, “Our FAST equipment
gives you the fastest results.”
SpeedyTech develops a brand-story around this position, including the
tagline, “FASTest results.” It develops touchpoints to convey this message
to its audiences. SpeedyTech is careful to use the tagline and messages
about this new equipment consistently. Intent on getting the word out to all
its audiences, it does the following:
Develops a website that is rich in content about the advantages of this
new equipment.
Develops and deploys e-mail blasts to drive audience members to this
website.
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Gives podium presentations about the groundbreaking science being
developed with its equipment.
Writes articles for trade publications.
Exhibits at trade shows.
Taps social networks to spread the word about everything it is doing.
Develops a monthly publication that features the science of some of
its best customers.
Uses promotional tactics to drive adoption of the technology, such as
referral programs and discounts.
Uses key opinion leaders to drive awareness about its technology
through webinars and presentations at conferences.
Uses marketing automation to track and measure visitors’ behavior
on its website, and then communicates to them based on their
behavior.
As a result of these efforts, the word spreads. Audiences come to
associate SpeedyTech and the FAST product with the fastest test results
available. Inquiries about the equipment start to increase. Editors and
reporters want to interview the inventor of the technology.
About 18 months after FAST’s introduction, SpeedyTech conducts
market research and determines that 63 percent of the population of
potential users associates this equipment with the concept of “fastest
results.” And both the number of inquiries about the product and the deals
closed to purchase it continue to increase.
This is the MMOA in action: a position is chosen, which is then
articulated clearly in the brand-story, which is expressed consistently in
touchpoints and thus influences the attitudes, beliefs, or behaviors of the
audiences.
Alas, the story of SpeedyTech doesn’t end there.
SpeedyTech salespeople are reporting that they have begun to lose
business to Lightning Lab, a small start-up competitor that has developed
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and recently introduced new technology that offers even faster results at
better resolution! Lightning Lab’s website shows its own product side by
side with a recognizable silhouette of SpeedyTech’s product, along with the
time-to-result figures–and asks the simple question, “Who really has the
fastest results?”
Suddenly SpeedyTech’s position–“Our FAST equipment gives you the
fastest results”–is in doubt. And the brand-story embodied by the
tagline–“FASTest results”–is no longer a believable promise, because
someone else’s results are faster. Pouring more money into marketing
tactics, such as displaying “FASTest results” on a larger trade-show booth,
won’t help. SpeedyTech now has a choice to make. Does it acquire the
smaller competitor (at a premium) to ensure that its position and the brand
promise remains intact, or does it choose a new position and attempt to
retrain all its audiences that the company no longer stands for the “FASTest
results” but something else? Either choice is distasteful and expensive.
SpeedyTech’s dilemma can be traced to one key deficiency in its
MMOA– its position. Its position–“Our FAST equipment gives you the
fastest results’–unintentionally left the door open to competitive advances.
The moral of the story is that each component of the MMOA requires
specific and particular attention.
At the environmental level, monitoring of trends and competitors is
crucial.
At the audiences level, the effectiveness of the touchpoints must be
constantly assessed through monitoring of the audiences’ images of
the organization’s offering.
At the touchpoint level, the brand-story must be expressed
consistently.
At the brand-story level, the position must be clearly articulated.
At the organizational level, care must be taken to ensure that the
position meets certain specific criteria: it should be clear, unique,
authentic, sustainable, important, believable, and compelling. I’ll
elaborate on these criteria in the next chapter. Unfortunately,
SpeedyTech chose a position that was neither unique nor sustainable.
While the MMOA is simple in theory, developing and implementing
high-performance marketing requires adherence to a set of principles that
have been tested by real-world experience.
In the following chapters, I’ll cover these principles and dive more
deeply into the components of the MMOA and explain them in detail,
starting with your position, which is, in effect, the DNA of all your
marketing efforts.
7
POSITION–YOUR MARKETING
DNA
In chapter six you saw how the marketing mechanism of action (MMOA)
works to create a unique space in the minds of your audiences and that the
first step in the process of creating this unique mind space–or image–is
positioning. Successful positioning leads to a clear, unique image, one that
will influence your audiences’ attitudes, beliefs, or behaviors (and,
ultimately, spur them to some action).
Like most marketing terms, position (or positioning) has multiple
definitions. I’ll use this one: positioning is your organization’s conscious
effort to select attributes that you want your audiences to associate
exclusively with your offering.
To understand how positioning works, consider a living cell. The cell’s
DNA controls most of the cell’s activity. A cell’s DNA is locked inside the
nucleus–effectively hidden from the rest of the cell. Its effects are only
visible through intermediary mechanisms, such as RNA and protein
expression. Your position is essentially your marketing DNA.
Unlike a cell, you actually can choose your marketing DNA by choosing
your position. And given that the function of your position is to differentiate
your brand from your competitors in ways that are important, believable,
and compelling, the position you choose is very important. In fact, selecting
an effective position is the fundamental starting point for your marketing
efforts, and absolutely critical to the success of all your marketing
initiatives.
Though the articulation of your position (in your brand-story) and the
subsequent expression of this brand-story (in your touchpoints) will be
publicly visible, the exact position your organization selects should remain
internal or private to your organization. This position is the controlling link
between your organization’s strategic competitive advantage and its tactical
marketing efforts, just as DNA is the controlling link between the cell’s
overall purpose and its protein expression, and therefore its metabolism.
In this sense, your position is the core of your marketing plan. Your
position should remain private–lest competitors attempt to thwart your
plans.
In more than two and a half decades of working with life science
companies, I’ve only had a few clients who provided a clear, concise,
effective, robust positioning document at the start of an engagement. More
often, clients provide one of two things, either their mission and vision
statements (which are for public consumption and typically don’t provide
enough guidance to direct and support the marketing function in making
distinguishing decisions) or an unfocused goal statement that is being
inconsistently and ineffectively communicated through taglines, messaging,
and brand-story.
Your position is the DNA of all your marketing
efforts.
The lack of effective, robust positioning statements and the prevalence of
poor substitutes is evidence of how difficult effective positioning is to
accomplish. Unfortunately, marketing activities that aren’t driven by a
unique position are pretty much guaranteed to produce mediocre marketing
results. Without a position that is unique, customers have no reason to see
your offering as anything but a commodity.
Choosing a unique and defensible position, however, can lead to great
success. For example, Forma was hired to help develop marketing tactics
for a midsize service organization serving the clinical trial market. This is a
highly commoditized sector; many competitors’ websites use language that
sounds similar enough to seem identical. This organization wanted to
increase its success in landing new business.
Through careful examination of the organization’s business practices,
Forma identified one area where its offering was indeed distinct. It provided
a significant and tangible benefit for the organization’s customers.
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This was a marketer’s dream: there were strong, verifiable customer
benefits from an offering that was unique in the market. This was a strong
strategic foundation. At a meeting with the customer’s entire team,
everyone agreed that the organization should use this position as the
foundation on which to build high-performance marketing efforts. The next
steps were to articulate these benefits in the brand-story and then express
this brand-story consistently across the entire ladder of lead generation.
Before Forma was even able to take these steps, the CEO modified the
company’s sales presentation to incorporate the new position. The very first
time she used this new approach–the day after our meeting–she closed a
sale with a new customer.
What made this company’s new approach successful? Its corporate
identity didn’t change and the existing tactical expressions (the touchpoints)
it was using were no different than its competitors’ tactics–every competitor
had a website, every competitor went to the same trade shows, etc. What
made the difference was a position that met the key criteria for effective
positioning. The success of the company’s marketing efforts can clearly be
traced to this unique position.
It is important to take the time to identify your position, one that meets
all the criteria for successful positioning.
Successful Positioning for Life Science
Companies
There are seven criteria for a successful position. All seven need to be
present. Miss one or more and your marketing efforts will likely produce
only mediocre results.
By the way, these criteria also apply to the marketing claims you make
and, if you are doing your job right, hopefully to the resulting image created
in the minds of your audiences. So, your position, your claims, and the
resulting image must meet the following criteria:
Clear
Unique
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Making the-complex-compelling-creating-high-performance-marketing by letruongan.com

  • 1.
  • 2. “Few are able to distill the complex down to a simple concept. It requires part art, science, and hard work to deliver a well-honed position and brand message. David accomplishes this on an ongoing basis and in Making the Complex Compelling goes further, simplifying and delivering the complexities of life science marketing in a well organized blueprint. Dare to engage...” –BRIAN REGAN, VP Marketing, TearScience “This book does an excellent job of demystifying the marketing process for non-marketers. The chapters on positioning and branding are especially valuable as these are probably the most misunderstood and misused topics, considering their importance at all stages of a company’s development.” –MALCOLM THOMAS, President and CEO, Arbovax, Inc Making The Complex Compelling is an absolute must-read for life science executives trying to grow and differentiate their business in today’s crowded, competitive marketplace. David does an excellent job simplifying complex strategies in a concise and compelling way, and illustrates beautifully with many real world examples. Most importantly, these principles work. Applying them to my company allowed us to grow at a CAGR over 100% for 7 years and then sell to an S&P 500 company. This is a highly recommended, enjoyable read for anyone in the life science field responsible for commercial operations or marketing. –TODD GROSSHANDLER, Owner, Enthalpy Analytical “Whether you agree with David’s somewhat proactive statement that the level of marketing in today’s life sciences is “appalling”, his new book Making the Complex Compelling will certainly resonate with both novice and veteran marketers, alike. It contains a level of practical detail that will challenge you to consider how good your marketing practices really are.” –ANDREW L. BERTERA, Executive Director of Marketing, New England Biolabs
  • 3. “David Chapin distill his years of design and life-sciences marketing experience into a highly readable conversation for those interested in or responsible for any aspect of marketing in the life-sciences industry. From entry-level marketer to the marketing executive in the C-suite, there is actionable information that can be used to turn contacts into clients. This book will help you make your complex marketing story compelling to potential customers, including those who don’t yet know your firm. And David does a superb job of simplifying this complex topic and providing a compelling solution to the life-sciences marketing challenge.” –DICK BLACKBURN, Associate Professor, Associate Dean, Undergraduate Business Programs, Kenan-Flagler Business School, University of North Carolina at Chapel Hill “As a scientist who tends to think analytically, this book opened my mind to how marketing should be done based on our customer’s point of view. The information in this volume is very useful; it is wonderful to have a marketing resource that is tuned to the specific challenges of marketing life science companies.” –RICHARD SOLTERO, President, InstantGMP “Marketing in the life sciences is a paradox in which communicating in a targeted concise way is seemingly in conflict with the thirst for deep analytical knowledge from a scientific audience. But at a time when the majority of the buying decision is completed over the internet, via word of mouth and on reputation alone, before the first engagement even occurs, it is essential that the life science marketer is skilled to establish a consistent, concise, and differentiated brand position that meets all seven of David Chapin’s stated success attributes. This is extremely difficult to do in a regulated, commoditized arena. With his wealth of experience and deep understanding from working with life sciences companies, David Chapin has constructed the manual on life science marketing strategy with Making the Complex Compelling. His book is littered with real life examples and practical steps to create and implement an effective and compelling life sciences marketing strategy. This is a quick and easy read for those looking to add value for high- performance.”
  • 4. –NICHOLAS SPITTAL, Senior Director, Global Commercial Affairs, Chiltern “David Chapin’s systematic and scientific approach to life science marketing always ends up being truly inspirational. As marketers we are sometimes dazzled by cleverness and sizzle, but the depth revealed in Making the Complex Compelling will give you insights into what it takes to develop and deliver campaigns that stick and deliver, consistently.” –ALLAN MOHESS, Sr. Director Clinical Informatics, bioMérieux “For someone that hasn’t worked with David Chapin, Making the Complex Compelling outlines the necessary steps that enable life science companies to keep moving forward in a sustainable way. The value to the organization is at least as important as the product or service they are selling. Each step in this book has components of “education, inspiration, and reassurance” embedded within it, so that the reader self-identifies and sees the value in developing their marketing the way it’s described.” –ANTON LEWIS USALA MD, President and CEO, CTMG, Inc. “Marketing by nature is complex. The approach, insights and examples that David uses in this book have been instrumental in helping me position my business for profitable growth. I would highly recommend this book as required reading for any marketer or executive looking to understand how marketing can impact your company.” –BRIAN KERSLAKE, Global Marketing Director, Kimble-Chase “David Chapin makes a compelling case for why brands and marketing are critically important, and offers practical insights about what managers should do about it. This book will inspire firms in the life sciences to craft brand strategies that can creatively enhance value for long-term success.” –JON BOHLMANN, PH.D., Assoc. Professor of Marketing, Poole College of Management, North Carolina State University “In Making the Complex Compelling Chapin has crafted a powerful “GPS” to help brand managers and their organizations optimally navigate the
  • 5. waters between science and marketing.” –MARTIN DOYLE, Director Marketing Operations and Strategic Business Planning, GlaxoSmithKline
  • 6.
  • 7.
  • 8. courageous thought leadership content Rockbench Publishing Corp. 6101 Stillmeadow Dr., Nashville, TN 37211 www.rockbench.com Copyright ©2014 David Chapin All Rights Reserved Interior and cover design by Faceout Studio Interior illustrations by David Chapin and David Storey Library of Congress Control Number: 2014956399 Printed in the United States of America First edition, 2014 ISBN: 978-1-60544-035-4
  • 9. TABLE OF CONTENTS Preface Introduction Chapter 1: Challenge, Chaos, and Opportunity Chapter 2: Marketing versus Science Chapter 3: The Myth of Marketing Immunity Chapter 4: The Tragedy of Undifferentiated Claims Chapter 5: How People (Really) Buy Chapter 6: The Marketing Mechanism of Action (MMOA) Chapter 7: Position–Your Marketing DNA
  • 10. Chapter 8: Crafting Your Positioning Statement Chapter 9: Your Brand-Story Chapter 10: Using Archetypes to Clarify Your Brand-Story Chapter 11: The Ladder of Lead Generation (LOLG) Chapter 12: Content Marketing Chapter 13: Content Strategy, Creation, and Maximization Chapter 14: Measuring Marketing ROI Chapter 15: Conclusion–High-Performance Life Science Marketing Epilogue: The Future of Life Science Marketing
  • 11. Acknowledgments Appendix 1: Relationships between Families of Brand-Stories Appendix 2: Marketing Performance Assessment Index:
  • 12. Preface Who This Book Is For If you’re responsible for marketing your products and services in the life sciences–specifically the sector devoted to discovering, researching, developing, and shepherding drugs and medical devices from discovery and invention up through the regulatory approval process–this book is for you. If you are a marketer at (or the owner of) a company involved in discovery, preclinical, or clinical trial activities related to pharmaceutical and medical-device development, this book is for you. If your offerings include pre-regulatory-approval life science equipment, instrumentation, products, or services that you want to market success- fully–this book is for you. This book does not address direct-to-clinician or direct-to-consumer marketing of pharmaceuticals, nor does it address retail health-care marketing, such as hospitals, etc.–these are special cases. While many of the concepts presented here are applicable, the strategies and tactics necessary to satisfy the specialized regulatory requirements in these cases are beyond the scope of this work. What this book will provide is a wealth of information–information you need to ensure that the marketing created by you (or the partners you enlist) will be high performance. Why I Wrote This Book There is a significant amount of ineffective marketing in the life sciences. Bluntly put, it’s appalling how poor these efforts are. One aim of this volume is to create a common understanding of the proper roles and goals
  • 13. of marketing among professionals working in the life sciences. Another is to provide tools to enable marketers in this sector to improve their own organizations’ marketing efforts. To that end, I have written this book as a strategic guide to doing it yourself. To the extent that this is successful, I have achieved one of my aims. As a by-product of these efforts, I hope that improved marketing will yield greater efficiencies along the drug and medical-device development chain, enabling the sector to speed the introduction of therapies that are more effective and less expensive. This is a lofty goal to be sure, but one that will benefit all of humanity.
  • 14. Introduction I’ve been involved with marketing for the life sciences for more than two decades. During that time, when I’d ask people why they chose their career path, the most common answer was some form of either, “I was interested in helping people” or “I got drawn in by the science.” I’ve never heard, “I got in it for the money.” To say this in another way, their decision was often driven by a desire to change lives for the better. When developing effective therapies to enable these changes, however, there are two main failure points. The first is the lack of proven efficacy. The second is the lack of money. Thousands of promising therapies have gone untested and undeveloped because of the lack of money. Addressing the first problem (provable efficacy) requires great science. Addressing the second problem (lack of money) requires something else entirely. Many life science products and services–and the businesses built around them–flounder because the creators believe that delivering great science will solve both problems: proving efficacy while simultaneously promoting differentiation, attracting the attention of potential investors and customers, and driving sales. This is drastically–and tragically–incorrect. Instead of making the complex compelling, the typical scientific approach to communication and marketing tends to make the already complex even more inaccessible and unintelligible. So how do you make the complex compelling? How do you create high- performance marketing? This book will show you how. I’ll set the stage by looking at the challenges and opportunities in the life sciences today (chapter one). I’ll examine how the traditional scientific mindset, while well suited for doing science, is poorly suited for creating high-performance marketing (chapters two and three). Then, I’ll visit the foundation for all high-performance marketing–differentiation (chapter four). And I’ll examine the buying cycle, because understanding how people buy is fundamental for creating effective marketing (chapter five).
  • 15. The core concepts of creating high-performance marketing come to light when I discuss positioning (chapters six and seven). The tools to create your own positioning statement are covered next (chapter eight). Then, I’ll discuss your brand-story (chapter nine), the use of archetypes (chapter 10), and the ladder of lead generation (chapter 11). Once you have mastered these topics, I’ll move into more advanced subjects, such as content marketing (chapters 12 and 13) and measuring ROI (chapter 14). I’ll conclude with a look at how all these strategies and tactics work together to create a high-performance marketing effort (chapter 15). At the end, I’ll go out on a limb and foretell the future of marketing by predicting future trends (epilogue). For further study, there are two appendicies with some additional information on brand families and a performance assessment. I’ve written this book as a guide; if you put into practice the principles covered here, you’ll be able to develop and implement high-performance marketing strategies and tactics. There are plenty of examples throughout; I’ve included these so you can learn from others’ experiences. Here’s to your success in making the complex compelling!
  • 16. 1 CHALLENGE, CHAOS, AND OPPORTUNITY Several years ago, Forma Life Science Marketing (the company I run) was hired by a laboratory to diagnose and treat significant issues with its marketing and sales. It was having trouble getting traction in the marketplace; growth had stalled. Using Forma’s diagnostic tools and processes, we determined, among other things, that its industry sector was fragmented–with a few large competitors, and many small ones, each offering similar services. Each lab owned equipment that was essentially the same. Each lab used this equipment to develop assays to test patients’ blood samples for evidence of the efficacy of drugs being administered during clinical trials, or for evidence of potentially harmful side effects that would stop the trials in their tracks. Forma’s diagnosis showed that, as in all such cases, there was significant regulatory scrutiny of the assays and of the data coming from the assays. So all labs had developed similar work processes for fear of drawing unwanted regulatory scrutiny. In addition, all labs produced similar results. The stakes for their customers were large; the difference between a drug that makes it through the regulatory approval process and one that doesn’t can be huge–millions or billions of dollars, not to mention the careers involved. The risks for their customers were high; hundreds or thousands of compounds fail for every one that makes it through regulatory approval. Each lab claimed that it was different, offering better service than everyone else. But realistically, while there were some differences between the labs that became evident once you were a customer, there were few
  • 17. differences that could be verified before a purchase. They all used similar equipment and similar processes to produce similar results. Simply put, it was hard for customers to find any reason to hire one lab over another. Without any meaningful differentiation, competition tended to focus on price. Falling prices drove service levels down, which increased the mistrust potential customers felt about the marketing claims of superior service offered by almost every competitor. This situation is not unusual. In the life science sectors related to the development of drug and medical devices (extending from discovery through preclinical to clinical trials), high stakes and high risks are common. The competition is fierce. But regulatory scrutiny tends to produce homogenization of both the work process and the work product. How can any provider be seen as unique (the foundation of successful marketing and sales)? This situation, which looks so dire, is a marketer’s dream. High stakes, high risks, and undifferentiated competitors set up a situation in which high-performance marketing can make a real difference. Indeed, working closely with our client, Forma was able to identify key differentiators, define a unique value proposition, create a unique brand, articulate the brand in a compelling story, and express all of this through high-performance marketing tactics. After introducing this new marketing, our client experienced an annual growth rate of greater than 100 percent for several years running, during the middle of the Great Recession. It attributed this growth, in no small part, to our high-performance marketing efforts. One competitor’s salesman came up to the lab’s booth during a trade show and said, “We hate you guys.” When asked why, the salesman responded, “Because you have something to talk about.” The lab was eventually sold to one of the largest competitors in the sector, leading to a handsome payout for the owners. Yes, there are significant challenges in life science marketing. But the chaos of the sector means there is also a lot of opportunity. You can compete successfully and this book can help you do so. First, you must start with a clear understanding of the competitive environment. Challenge, Chaos, and Opportunity
  • 18. The life science industry is in turmoil–a blend of crisis, confusion, chaos, and opportunity. Developers of life science products and services must now navigate a globalized market, increasing costs of development, and constantly evolving technology. As if that’s not enough, old business models are disintegrating and new ones are emerging. Regulatory climates are in flux. And these are just a few of the many trends that are impacting the development of life science products and services, including scientific instrumentation, drugs, and medical devices. Your marketing decisions will be affected by these changing external factors (or they should be), so it is useful to take a closer look at the most significant trends that already are impacting your business. Globalization: The development of life science products and services is maturing as an international business. Discovery, testing, and manufacturing are now less limited by geography and political boundaries. While this globalization brings increased competition from global suppliers, it also gives life science organizations access to talent and resources they did not have before. Disintegrating Business Models: When Henry Ford started making cars, his operations were vertically integrated. For example, Ford owned a sheep farm in order to control the quality of wool for his seat fabrics. For decades, the major pharmaceutical companies operated in a similar, vertically integrated manner, controlling everything from the early discovery of new technologies and compounds all the way through the final marketing of instruments, approved drugs, or medical devices. Today, life science companies are increasingly focused on a few core competencies and so the outsourcing of secondary or tertiary aspects of the business has become the norm. The life science development ecosystem is now composed of suppliers and partners that provide research, development, toxicology, ADME (absorption, distribution, metabolism, and excretion), formulation, CMC (chemistry, manufacturing, and control), and more. As the market has become more and more connected, employing others to perform functions more efficiently, faster, and at lower cost has become nearly frictionless.
  • 19. Partnerships, preferred vendors, functional service providers, and crowd- sourcing are growing trends in the life sciences, changing and diversifying the ways organizations can monetize their expertise. Rising Costs: To discover, develop, test, validate, and bring to market drugs, medical devices, diagnostic assays, scientific instruments, and other products and services in the life sciences is already expensive and there is every indication it will become even more so. Depending upon whose figures you believe, it can cost anywhere from one to two billion dollars or more to bring a single drug from discovery to final FDA (Food and Drug Administration) approval. These figures do not include any ongoing costs, such as marketing. While developing a medical device, instrument, and diagnostic assay may not be as expensive, the costs are still significant. Decreasing Efficiencies: The efficiency of drug development (measured as the number of products that achieve regulatory approval divided by the total cost of all drug development) is trending downward, and has been for decades. The industry is searching for solutions to address the fundamental inefficiencies in the development process. Decreasing Revenue: The so-called patent-cliff is a fact of life. As patent expirations for blockbuster drugs loom (or have already come and gone), increased competition and reduced revenue is the order of the day. A Rising Standard of Efficacy: Blockbuster drugs such as Lipitor are very effective at treating their target conditions. This makes introducing a new, more effective drug even more difficult, particularly when the new drug will be subjected to research focused on comparative effectiveness. As these blockbuster drugs come off patent, it may be so difficult and so expensive to find a replacement compound that meets all the criteria for blockbuster status that companies abandon the attempt. For example, Pfizer, maker of Lipitor, the world’s best-selling drug for years, abandoned its research and development of compounds that could outperform Lipitor.
  • 20. Economic Challenges: The effects of the Great Recession will linger for years. This near-meltdown was global in scope and revealed many weaknesses in the life science financial ecosystem. With credit limited, many start-up companies face “shorter runways” and have less development time before needing to make the “launch or abort” decision. Venture capitalists continue to hoard their money and invest only in the most promising opportunities. Financing is harder to get, making it that much tougher for start-ups–the plankton of the life science ecosystem–to reach profitability. Regulatory Uncertainty: Regulatory bodies are being subjected to growing scrutiny and increasing political pressure. Expectations for patient safety are growing. The number of new drug approvals is decreasing. New regulations are being considered or are pending. And proposals are being made to overhaul regulatory functions. There is a large political battle being fought, and the end result is anyone’s guess. The FDA is undergoing an initiative to increase transparency. With this much confusion in the marketplace, divining the future is extremely difficult. Thankfully, the news is not all bad. New Discoveries: James D. Watson and Francis Crick published their discovery of the molecular structure of DNA in 1953. Up until the 1970s, scientists thought that 99 percent of a human’s genetic code was “junk.” Now, only a handful of decades later, the genetic code is being revealed as a very complex system of genes, switches, regulators, and amplifiers. Teams of scientists have created man-made DNA and replaced the naturally occurring DNA of a cell, opening up vistas previously unimaginable. These new discoveries, among others, have led to the creation of many new industry sectors, serving markets whose names end in -omics: genomics, proteomics, metabolomics, cytomics, kinomics, lipidomics, epigenomics, etc. Despite temporary restrictions on research in certain areas (e.g., stem cells), the pace of discovery continues to gain momentum, and will continue to do so for the foreseeable future. The opportunity to capitalize on these discoveries is significant and the number of those opportunities will continue to expand.
  • 21. New Technologies: New research tools are being introduced every year, replacing existing standard tools. New technologies are being brought on line. New diagnostic tests are being approved. New assays are being developed. Which of these will win and become accepted by the marketplace? Which will lose and become footnotes? Rising Demand: The world’s population is getting older and an aging population places greater demand on the health-care system. The ability to diagnose and treat more diseases also is growing and so the expectation for access to health care, drugs, medical devices, diagnostics, and treatment will increase as well. At the Intersection of Challenge and Opportunity: Marketing Maximizing opportunities while minimizing the impact of confusion and chaos requires life science organizations to focus their efforts and understand their unique value. They also must somehow communicate their complex offerings in ways that are compelling to prospects and influencers. That “somehow” is marketing. As relationships between internal departments are replaced by relationships between separate but connected businesses, marketing provides a vital link. Marketing can convey advantages, drive the adoption of new technology, enable successful competition in a globalized market, and connect customers with the unique value offered by individual companies. Marketing can help differentiate your business in a crowded marketplace. Surprisingly, there is very little effective marketing in this sector, particularly business-to-business marketing. Many firms are making marketing claims that are not unique, not meaningful, and not compelling. That means that life science firms that get their marketing right have a huge opportunity to dominate their market space. For many organizations, however, differences in the worldviews of marketers and scientists get in the way of getting it correct. And too often
  • 22. these differences result in marketing decisions that actually impede business success. The good news is that the two worldviews can coexist, each profiting from the strengths of the other. High-performance marketing can help counteract the increased competition and globalization of the life science sector. Granted, getting life science marketing right isn’t the only thing necessary for success. You also have to have great science, proper financing, inspired leadership, and motivated employees, among other things. But this book isn’t about all that; it’s about marketing. In the next chapter, I’ll examine in detail the differences between the two worldviews, and consider how marketing can affect audiences so you can set goals, develop strategies, create high-performance tactics, and implement your marketing plans–while prospering from it all.
  • 23. 2 MARKETING VERSUS SCIENCE Fundamental differences in the worldviews of marketers and scientists can lead to decisions that impede or even derail life science marketing efforts. Time and again, I’ve seen scientists’ lack of understanding of marketing leading to poor decisions that cause mediocre, or worse, no results. This lack of understanding by scientists springs from the scientific world- view, which respects different behaviors and values than the marketing worldview. Scientists often distrust marketing because they believe that its goal is to manipulate behavior–theirs and others–while at the same time believing that they are immune to marketing’s effects. Conversely, marketers’ lack of understanding of how scientists view the world can result in marketing campaigns that fail to resonate with their intended audience. Unquestionably, these worldviews give each discipline its power. Science is great at solving certain types of problems, and marketing is great at solving other types of problems. But when the scientific worldview is used to try to solve marketing problems, difficulties ensue. In this chapter, I’ll dive deeply into the worldviews of science and marketing to help you understand the differences and bridge the gap between the two. Let’s begin with science. The Worldview of Science To begin this discussion, it is important to agree on the answer to a seemingly simple question: “What is science?” The word science is derived from the Latin root scientia, which means knowledge. There are two common definitions. First, science is a branch of knowledge or study dealing with a body of facts or truths systematically
  • 24. arranged and showing the operation of general laws. Second, science is the systematic knowledge of the physical or material world gained through observation and experimentation. The exact definition is not as important as the worldview behind the definition. Both of these definitions reflect the five major priorities of the scientific worldview: to comprehend, to describe, to predict, to be complete, and to be systematic. The Five Priorities of Science To Comprehend: Science is the systematic extension of curiosity. “How does that work?” is a question that goes back to the dawn of time, and whether the subject of the question is the rising of the sun or the workings of mRNA, the fundamental quest to comprehend is at the root of science. To Describe: With the priority of comprehension comes the need to describe: to be able to explain the answers to those questions located on the horizon of current knowledge. Without the ability to describe, comprehension is limited to one individual. Science begins with the individual scientist, but much of its power comes from the collective efforts. As Isaac Newton observed, “If I have seen farther than most, it is because I have stood on the shoulders of giants.” Without a description that can be passed from one scientist to another, there are no “shoulders” on which to stand. To Predict: Prediction is how science tests its ability to comprehend and describe. Without a refutable prediction, no advance is truly possible. As Karl Popper (a preeminent philosopher of science) once observed, “A theory which is not refutable by any conceivable event is non-scientific. Irrefutability is not a virtue of a theory (as people often think) but a vice. Every genuine test of a theory is an attempt to falsify it, or refute it.” 1 To Be Complete: The goal of comprehension has a corollary: completeness. The quest to comprehend and describe a biologic mechanism of action and then to use that understanding to predict the system’s behavior is only valuable to the extent that the comprehension, the description, and the ability to predict is complete. This drive for completeness, for total
  • 25. understanding, for the ability to describe the system down to the smallest detail, is built into the discipline of science. For example, when reviewers submit comments on a proposed submission to a peer-reviewed journal, they point out the unanswered questions in the author’s work because they want the author to complete what they perceive to be an incomplete picture. Additionally, the regulations that govern much of the drug-development industry, such as those of the FDA (Food and Drug Administration) and the EMA (European Medicines Agency), among others, require a large measure of completeness, and those agencies are not shy about asking for additional information. To Be Systematic: A systematic approach is critical in science, as the discipline seeks to push back the boundaries of the unknown, and essential to the formulation and posing of increasingly sophisticated questions. A systematic approach is also necessary to tease out answers and meaning from a mass of experimental conditions and variables swimming in a sea of seemingly irrelevant and distracting background noise. Even with this systematic approach, the answers that do emerge are often subtle or even misleading and new answers almost always lead to still more questions. For this reason, scientists’ approach to the question-asking process must be systematic, because it is only by being systematic that they can hope to be complete. These five priorities can be summed up as a belief; scientists value knowledge. They believe in putting knowledge first. An anecdote will make this clear. Several years ago, Forma was approached by an organization that had been started by a scientist on the faculty of a prestigious university. His goal to comprehend the workings of the cardiovascular system led him to describe a better system for predicting the likelihood of coronary disease among certain patient populations. As these things tend to go, the discovery had moved off of the research bench and into the business world as a corporation. The company, however, was having trouble getting traction with physicians (the primary audience). It approached us with a strictly tactical need that centered on the use of a particular graph. This graph summarized the science behind years of work, and the scientist and his team wanted it to be featured prominently on every
  • 26. possible marketing touchpoint, including their trade-show booths and brochures. They even wanted the graph printed on the back of their business cards! Company leadership believed that telling the story of the graph would compel their audience to change their attitudes, beliefs, or behaviors and lead to more sales. I asked them to tell us the story of the graph. Their reply involved quite a bit of explanation. In fact, it took more than a half hour to tell the entire story the first time we heard it. To make matters worse, the details were presented first. The story we were told was complete–excruciatingly complete. Once we understood the graph and all its implications, the meaning began to unfold. But while the graph summarized the results of the data, it didn’t describe the mechanism of action. And as we learned through later research, physicians had to comprehend the mechanism of action before they would be motivated to change their diagnostic and prescribing behaviors. The graph was a beautiful thing; it represented deep insight and the culmination of years of work. It summarized, clearly and systematically, the nature of cardiovascular risk and used this knowledge to predict risk among patient populations. But stressing this knowledge in and of itself was not enough to change behavior. Something more was needed. Something that was outside the scientific worldview, but at the core of the marketing worldview. The Worldview of Marketing For the sake of symmetry, here is a general definition of marketing. Marketing is the identification of a need in the marketplace, and the matching of a product or service to that need at a profit. Again, it is important to look behind the definition to the priorities of marketing and the worldview embodied by those priorities. There are five major priorities in the marketing worldview: to communicate, to educate, to inspire, to reassure, and to influence. As you will see, some of these priorities conflict with those of the scientific worldview.
  • 27. The Five Priorities of Marketing To Communicate: Rather than striving for completeness, marketing’s goal is to communicate clearly. Clear communication should lead to audience comprehension, which is the first step in influencing someone’s attitudes, beliefs, or behaviors. In science, the audience’s ability to comprehend is secondary to the complete description of the issue at hand. For example, the author of a peer- reviewed paper cares less about how long it takes his audience to read and understand the paper than he does about whether the paper is a complete description of the issues. In contrast, marketing is less focused on completeness and more focused on clear communication. To Educate: Marketing has shifted in recent years and one of the major shifts is the increasing focus on education as a goal of marketing efforts. This change can be directly connected to the now ubiquitous nature of information. In this new role of educator, marketing helps prospects learn about their situation, needs, and potential solutions. For instance, as I will cover in chapter five, early in the buying process prospects often are unaware and either don’t realize, or don’t believe, they have a problem. In this case, marketing can help these unaware people start to realize that their life could be better, that problems do exist and solutions are available. Marketing can also help prospects differentiate between solutions, and draw clear distinctions so they can accurately judge which offerings are most appropriate to their situation. To Inspire: Marketing can help prospects determine that their needs can be addressed and that their situation can be improved. One of the steps in doing this is to inspire prospects and help them imagine how their lives could be better. As in the education step described above, inspiration is one of the key steps in the buying process. To Reassure: Marketing can be a source of reassurance, helping prospects understand that the choices they are making are the right ones. Reassurance is a crucial step in the buying cycle. Once prospects distinguish between
  • 28. alternatives, marketing can help them choose a solution and remain confident that it is right for their situation. To Influence: The main goal of marketing is to influence attitudes, beliefs, or behaviors. But those with a cynical view of marketing often think of it not as influencing attitudes, beliefs, or behaviors, but as manipulating them. It is this perception of marketing as manipulation that concerns many people, scientists included, causing them to distrust the whole process and anyone involved in it. To be sure, some people in marketing have not done the discipline any favors, especially those who continue to actively boast about their ability to manipulate unwilling audiences! Marketing does have influence, however, and it can be surprisingly powerful. Given this fact, it is all the more important for science to understand marketing and to be able to harness its power to communicate, educate, inspire, reassure, and influence its audience. Rather than putting knowledge first, marketing’s overarching priority is to serve the needs of its audiences. In marketing, the audience, rather than knowledge, comes first. Marketing and Science Have Different Goals Nearly all scientists would scoff at the notion that marketing is a science. While great strides have been made in describing human behavior in the marketplace, the general laws of human behavior are not really laws, at least not in the same way that the laws of genetics are laws. Human behavior is not universal, and observation and experimentation in the marketing sphere doesn’t always yield strictly reproducible results. Some marketing experts disagree and would claim that marketing is a science, in the sense that there are theories that can be postulated and then tested via observation and experiment. Rather than attempt to referee this rather pointless argument, I’ll point out that arguing whether marketing is a science or not really misses the point, which is that marketing and science have very distinct fundamental goals that derive from their different world-views. Science seeks to
  • 29. understand. Marketing seeks to be understood. Science seeks to comprehend, describe, and predict while being systematic and complete, and marketing seeks to communicate clearly, educate, inspire, reassure, and influence. Science seeks to understand and puts knowledge first; marketing seeks to be understood and puts the audience first. Science aims to communicate, but places the onus of understanding on the audience. Conversely, marketing seeks to communicate clearly and so assumes the responsibility for ensuring that audiences can easily comprehend its message. These two worldviews are very different. And misunderstandings between each discipline’s practitioners have encouraged a sense of opposition–hence the title of this chapter. But I believe this sense of opposition is ill founded; science and marketing must coexist, and an understanding of the strengths and weaknesses of both worldviews is the place to begin. The Graph’s Hidden Story Remember the graph that summarized years of results from studying cardiovascular risk? While the graph described the nature of risk among patient populations completely, a quick look at the company’s profit and loss statement was proof enough that the complete story was not especially effective at influencing anyone to change their behavior (that is, buy the product). What was missing? A focus on clear communication to the audience. By telling the story in a way that took a long time, that focused on the small details, and that was complete, this company was putting the scientific knowledge first, treating communication with the audience as it would treat communication in a peer-reviewed journal article. This
  • 30. approach would be valid if physicians changed their attitudes, beliefs, or behaviors only when presented with complete, detailed, peer-reviewed data. But this is not the case. To put clear communication with the audience first (rather than the complete depiction of knowledge) required telling the story of the graph in a different way. And once we did so, sales accelerated. The organization’s sales exceeded the established goals, something that hadn’t happened in four years. A Science and Marketing Worldview Matrix To summarize, marketing and science have different worldviews. To market scientifically based products and services to technically trained audiences, you have to understand the similarities and differences. The differences can cause a series of fundamental problems that, left unchecked, will impede and even neutralize the effectiveness of your marketing. This table offers a quick comparison of the two worldviews. FOR THE DISCIPLINE OF . . . SCIENCE MARKETING The general goal is to . . . Comprehend Communicate So that its practitioners can . . . Describe and predict Influence attitudes, beliefs, or behaviors In one word, this discipline wants to be . . . Complete Compelling So the focus is typically on the . . . Details Big picture And the communication is . . . Thorough A summary
  • 31. 1 Karl Popper, Conjectures and Refutations (London: Rutledge and Keagan Paul, 1963), 33-39.
  • 32. 3 THE MYTH OF MARKETING IMMUNITY “I Don’t Look at Logos” For some research Forma conducted on behalf of a client, we recruited several groups of research scientists who were using a particular class of lab products. We were interested in their responses to the general marketing efforts of the competitors in this market segment, and to the marketing efforts of our client in particular. One question involved testing for brand awareness, specifically corporate symbols, to which one focus group member responded, “No, I do not look at logos.” Several other members of the group immediately seconded her statement. Now, if you walk into any lab, you’ll find corporate trademarks on just about every item in the place. From the pipettes to the chromatographs to the cover of the lab notebooks to the back of the Post-it notepads, corporate trademarks are everywhere. It is impossible not to look at corporate trademarks, so it’s hard to believe that this respondent meant exactly what she said: “I do not look at logos.” What she probably meant to convey was something like this: “While there may be lots of logos around, I can and do ignore them.” After further discussion, it became clear that this respondent felt that the marketing efforts of this product segment just did not affect her. She thought she was immune to marketing. Many other respondents (both male and female) expressed the same sentiment, and their comments made it clear that they had a generally negative impression of marketing.
  • 33. Now, scientists are not alone in believing they are immune to marketing efforts. This sentiment is shared by a wide section of the general population. But through my experience, I’ve discovered that many scientists believe they possess particularly strong immunity. Those scientists feel that the rational thought processes embedded in their discipline confers some sort of extra special protection against the “insidious and generally negative” nature of marketing. As you’ll see shortly, some recently published, peer-reviewed research proves that marketing immunity is a myth. Marketers and Audiences Escalate the Situation I believe that the idea of immunity to marketing is as ludicrous as the idea of immunity to the effects of atmospheric pressure or capitalism. Marketing is part of the structure of our society. We all come in contact with marketing messages every day. Despite their prevalence (or maybe because of it), we have learned to pay very little conscious attention to these messages. We experience most of them as annoying petitions–poking us, prodding us, banging away to attract our attention. And we get tired of being bothered all the time, so we develop thick “mental calluses.” We have become so adept at tuning out marketing that marketers have learned that to get our attention they have to “poke” harder. They poke and prod harder; we develop thicker calluses. We develop thicker calluses; they have to poke and prod even harder–an escalating cycle. Back in the days of only three television networks, marketing could work by interrupting people (it’s still called a commercial break after all). And interrupting still works, to some extent, doesn’t it? Who isn’t annoyed by those flashing banner ads at the top of web pages? But if you are like most people, you can’t help but read some of them, even as annoying as they are. Thus, interrupting still works on occasion. Escalation Results in Sophistication
  • 34. Because we don’t like interruptions, we develop sophisticated filters that distinguish between useful information and what we consider to be noise. And in response, the marketers vying for our attention develop more sophisticated methods of attracting attention. And then these methods end up training the audiences to become ever more selective in what they pay attention to. It is a continuing struggle: marketers want the attention of the audiences, and the audiences don’t want their attention hijacked. To get a glimpse of how far this war for attention has come, look back at some of the advertisements in magazines from the 1930s. For example, an ad for ordinary yeast declared, “‘Tired out, run down persons become completely changed,’ says physician of Germany’s greatest free hospital.” This language and the claim itself feels quaint and, in many ways, naïve. In the intervening decades, as the audience members (and their filters) have become more sophisticated, the marketing efforts required to reach audiences have also become more sophisticated. Clear evidence of marketing sophistication was seen in the discussion with the participants of the focus group I mentioned earlier. Their ability to decode visual messages was extremely fine-tuned, and this ability was shared by every scientist in the group. To give just one example, despite the statement that they “do not look at logos,” the respondents had a fascinating discussion about which of the several corporate trademarks from key competitors looked the most out of date. They could read significant meaning into the choice of colors. They could decode meanings in images and shapes. They could apply this sophisticated visual processing to ads, catalog covers, corporate trademarks, websites, and brochures. They were drawn to certain messages and designs, and were uninterested, or even repulsed, by others. Whether or not they consciously paid attention, these scientists were sophisticated consumers of marketing messages. The culture these scientists grew up in, so dominated by visual communication, had taught them very sophisticated skills in seeing and consuming this same visual communication. Yet these same life science researchers were convinced they could control their own responses to these marketing messages.
  • 35. The Myth of Immunity Recent research 1 shows that marketing messages have clear effects outside of our control. In fact, you don’t even have to consciously register marketing messages to be affected by them in profound ways. Researchers at Duke University and the University of Waterloo in Ontario, Canada, found that exposure to brands changed the behavior of the viewer. This effect extends beyond purchase behavior. The most amazing thing about this change in behavior was that it was triggered by subliminal messages. That is, the viewer did not have to consciously register the stimulus to exhibit the change in behavior. The research was conducted like this: Subjects were given a standardized test that measured their ability on a particular trait. In this case, the traits being measured were honesty or creativity. The subjects were also questioned about several corporate trademarks. One set of corporate trademarks was associated with the particular character trait being measured, either honesty or creativity; the others had different character traits, but were neutral with respect to the traits being measured. Subjects were then divided into two groups and shown a series of numbers, one at a time, in sequence. They were asked to keep a running sum. Interspersed among the numbers were corporate trademarks from one of two companies. These corporate trademarks were purposely shown too quickly to be consciously registered. In fact, in subsequent questioning, no respondents reported seeing any images amid the number sequence. Upon completion of the running sum, the participants were tested for an increase in behaviors related to the personality trait. The results were significant: Participants subliminally exposed to the corporate trademarks of a brand associated with creativity exhibited more creative behavior (on a double blind test designed to measure such behavior) than participants exposed to the corporate trademarks of a brand not associated with creativity. Similarly, participants subliminally exposed to corporate trademarks of a brand they associated with honesty, displayed more honesty in subsequent tests than did participants exposed to corporate trademarks that had no such connotation. The subliminal presence of the corporate trademarks changed participants’ behavior, and the effects were present even when the subjects
  • 36. were completely unaware of the presence of any marketing message whatsoever. In the words of the researchers, “Brand exposure can shape nonconscious behavior.” The authors conclude, “Participants responded to brands by behaving in line with the brand’s characteristics, and did so with no conscious awareness of the influence.” So, even those who believe that a rational world-view grants them immunity can be profoundly affected by marketing. How does this apply to life science marketing, which typically involves selling sophisticated products or services to technically sophisticated audiences? There are two key implications: No One Is Immune to Marketing: The authors of the research state, “ . . . we believe consumers are unlikely to have the ability to successfully guard against brand-influence, given the capacity such efforts would require and the fact that much of brand-influence likely flies under the radar of consumer attention.” Marketing Cannot Manipulate People into Doing Anything: While no one is immune to marketing, no one can be unconsciously manipulated into doing something they don’t want to do either. The research I’m referring to doesn’t prove this statement, but the researchers found that the effect on behavior is strongest when the audience values the characteristics embedded in the brand image. When the audience does not value, or does not possess a “chronic motivation” to exhibit the characteristics embedded in the brand, there will be little or no effect. Their conclusion: “It is not thought to be possible to create a new motivated state” via brand exposure. In other words, the fears of marketing’s ability to manipulate people into doing something they would not otherwise want to do are unfounded. Peer-reviewed research has shown that no one is immune to marketing.
  • 37. The ability to influence attitudes, beliefs, or behaviors, however, is one of the many reasons that marketing has a powerful place in business. Granted, marketing alone may not be sufficient, but it is certainly necessary. No great company has ever succeeded without paying close attention to marketing, and this is true whether your audience has a rational worldview or not. But while marketing’s strategic importance should not be doubted, the tactics you use in your marketing do indeed depend upon whether your audience has a rational worldview or not. Marketing Does Matter The bottom line is that marketing does matter. How much? Remember the story of the company that came to us with a graph? Well, when we began helping that company, they hadn’t achieved their sales goals in four years. We developed a clear marketing strategy and some fairly standard marketing tactics, and focused on communicating clearly to their audience first and foremost. By understanding marketing and putting their audience–rather than knowledge–first, the company was able to achieve (and even exceed) their sales goals. Marketing is powerful. It can help you bridge the gap between your great science and your business-related goals. To get the most out of marketing, however, you must understand its power, its limitations, its priorities, and its worldview and how all these can be used to drive your commercial success. Failure to do so results in low-performance marketing. In the next chapter, I’ll examine how making undifferentiated claims impedes your ability to promote your organization and its products and services. You’ll see how unique claims enable an organization to be perceived as truly different and therefore valuable; differentiation is at the very heart of high- performance marketing. 1 Grainne M. Fitzsimons, Tanya L. Chartrand, and Gavan J. Fitzsimons, “Automatic Effects of Brand Exposure on Motivated Behavior: How Apple
  • 38. Makes You “Think Different,” Journal of Consumer Research 35 (June 2008): 21-35.
  • 39. 4 THE TRAGEDY OF UNDIFFERENTIATED CLAIMS The following language is quoted from the websites of various companies all serving the same (or closely related) life science sector. The names have been changed so these companies remain anonymous. Based on our experience and expertise, Company W will provide faster results of your high-quality sequencing at very affordable prices. There is some additional language on the home page, but the quotation above obviously represents this company’s core claim. Here’s another, from a different site: Company X is synonymous with scientific excellence and high standards as we continue to provide our customers with industry- leading service quality . . . Company X takes great pride in consistently providing high-quality results with fast turnaround times; meeting and frequently surpassing our client’s stringent requirements. And another: Our commitment to operational excellence allows us to quickly and securely deliver the highest-quality results to our clients. We are an extension of our client’s laboratory by providing
  • 40. outsourcing solutions with the quality and trust expected from an in-house provider. And another: With competitive pricing, reliable service, and high quality, and attentive care to our customers always on our minds, we strive to provide only the best, while always seeking ways for improvement. The Need for Differentiation Marketing is the identification of a need in the marketplace, and the matching of a product or service to that need at a profit. The examples quoted above all show that a need has been identified. It should be easy to figure out that the need used in this example is genetic sequencing. So, half of the definition of marketing (identifying a market need) has been fulfilled. What about the other half: helping customers address (buy) a solution for the identified need? Here is the tragedy: these claims do not help customers accomplish the purchase of a solution at all and so are a waste of the time and precious attention of the audience. Let’s look at these claims in detail, by translating them into plain English: “Based on our experience and expertise, Company W will provide faster results of your high-quality sequencing at very affordable prices.” In other words: “We have experience and expertise. We are quick. We provide high- quality results. We are very affordable (cheap).” Think for a minute about this firm’s competitors. Would any firms claim that they do not have experience and expertise? Would any claim that they are not quick? Would any claim that they do not have high quality? Would any claim that they are not affordable? No. All will claim that they have experience and expertise, that they are quick, that they provide quality services, and that they are affordable. So, all of the firm’s competitors will make the same claims. Claims that do not differentiate your organization, your service, or your product are meaningless, ineffective, and a waste of time for both you and
  • 41. your audiences. “But wait,” you may protest, “not all of those firms will be providing products or services of equal quality. Some will be superior to others.” That is exactly right. In fact, given enough firms in the marketplace, there will be a bell-shaped curve describing the variation in quality of products or services, with a few firms providing very high quality, a few firms very low, and the majority somewhere in the middle. Figure 1. Despite a normal distribution of the quality of the product or service, all companies, if asked, will claim that they provide high quality. Claims that are not verifiable before a purchase are undifferentiating and actually create buying resistance. Imagine that a potential customer with money to spend asked any of these firms the following question: “I am ready to buy, and I will only work with a firm that can provide high quality. Do you provide high quality?” Every single firm would say yes. Even those firms on the low end of the bell curve would say yes. Whether they believe the statement or not is not the issue, nor is the quality of their products or services. The fact is all firms will claim that they provide high quality. So, if all firms make this identical claim, how does this claim distinguish one firm from any other? Answer? It doesn’t. Spend a few minutes browsing the websites of CROs, preclinical labs, CMOs, formulation labs, management consultants, qPCR suppliers, flow cytometers–just to name a few examples–and you will find many claims that are not differentiating and thus cannot be effective.
  • 42. » » While this problem is more pronounced for service providers than it is for companies that sell products, there are many examples that can be found in product-oriented companies as well. Ironically, many of the sectors with the most blatant examples of undifferentiating–and therefore ineffective–claims are sectors where the governing regulatory bodies (e.g., the FDA) do not regulate marketing claims. For example, Forma worked with a lab whose marketing claims were not regulated by the FDA. The organization’s leadership could not bring themselves to select a single set of differentiators. At each stage of the project, the leadership would argue among themselves, ultimately changing their decision about “what makes us different,” despite evidence from market research. This new direction would invalidate all work done previously. Without agreed-upon and stable differentiation, no budget, however large, could make their marketing effective. High-performance marketing highlights your offering’s unique value and thereby attracts audiences. High-performance marketing must be based on truly differentiating claims. This makes it easy for prospects to choose your offering over the offerings of others by showing them that your firm is indeed different, distinct, even unique. High-performance marketing is achieved through a four-step process: First, you identify the differences between you and “those other guys,” which results in an effective position. Second, you articulate these differences clearly–that is, you communicate these claims of distinction in (verbal and visual) language that your audiences understand.
  • 43. » » Third, you test these claims to ensure that they are effective and defensible. Fourth, you express (or promote) these claims through various channels, executing the tactics of your marketing plan. Do all of this correctly, and people will raise their hands and step out of the anonymity of the Internet to have a sales conversation. But they won’t raise their hands for just any claim. For example, one insurance salesman might have red hair, but identifying, articulating, testing, and expressing this distinction doesn’t really help draw customers to the firm or prompt them to buy, because when it comes to purchasing insurance, the audience just doesn’t care about hair color–this claim is not important or compelling. It is crucial to make claims that actually distinguish your organization and are important, believable, and compelling to your audiences. This sounds simple, but judging from the claims typically made in the life sciences, it isn’t that easy to accomplish. Many life science organizations simply do not understand how marketing actually works. As a result, untold amounts of time, resources, and attention are wasted without achieving any of the results that high-performance marketing can produce. To create high-performance marketing, you must first understand how people buy. Let’s explore that process now.
  • 44. 5 HOW PEOPLE (REALLY) BUY There is a great deal of misconception about buying, but because of its importance to corporate success few subjects have been written about more intensely. And in this case, the buying experiences I am talking about are not retail purchase decisions for negligible amounts (“Hmm, do I really want to buy that soda?”). The discussion here addresses large-ticket items purchased through a long sales cycle and assisted (i.e., mediated) by a salesperson. Much of the current literature on this topic focuses on the reasons for buying, and looks at motivating the sale through a variety of factors, such as deprivation, obligation, fear, or temptation (to name just a few). This focus requires a deep understanding of the psychological makeup of the buyer. Today, buyers can remain unidentified right up until the last minute, thanks to the prevalence and quantity of free information, which allows them to compare offerings anonymously. So while probing the psychological makeup of the buyers may be helpful once they abandon their anonymity, marketing frequently does not have this luxury. For this reason, it is useful to look at buying from another perspective, not one of psychological manipulation of the buyers, but one of supporting the buyers as they progress through the buying cycle. To do this, you need to look at buying behavior from a slightly different viewpoint; you need to view it through the lens of change. Buying is an experience that requires people to commit to change (though they may not think of it that way consciously). People (your customers) commit to pay you money for something that they believe will provide the benefits they desire. In doing so, they are committing to a change of some kind.
  • 45. Buying is a commitment to change. As I’ve already mentioned, the motivation to change (to buy something from you) can occur for a number of reasons, including inspiration, deprivation, obligation, education, or temptation. Whatever the psychological reason for change, researchers have shown that all people undergoing change progress through distinct stages. Prochaska’s Transtheoretical Model of Change There are many models of behavioral change, but the one that translates most directly to purchase behavior is Prochaska’s transtheoretical model of change.1 Prochaska’s model reinforces the idea that salespeople can’t force anyone to buy something, but they can help make it easier for people who are ready to buy (or to progress from one stage to another in the buying cycle) to take the steps (make the changes) necessary to do so. In this model, the motivation to buy is defined as a state of readiness to move from one stage of change to another. The Prochaska model offers a predictable pathway for behavioral change. Understanding the pathway of purchase behavior enables you to effectively assist your buyers in progressing from one stage to the next by helping you understand how much you need to communicate with them, when you need to communicate with them, and what type of communication they need. Stage One: Precontemplation Individuals in the precontemplation stage (those who are unaware) deny that there is the need for change and therefore have no intention to commit
  • 46. to change in the near (or even distant) future. At this point, they resist change. A prospect in this stage might be content with the current situation or might be in denial about the need for change: “We don’t need a new peptide synthesizer; the solution we have works just fine.” Stage Two: Contemplation (Research) Individuals in the contemplation stage (i.e., researchers) acknowledge that there is an issue and begin to contemplate the need for change. They wonder about possible solutions, and seek information about these solutions. Figure 2. In Prochaska’s model, there are six stages to permanent change: precontemplation, contemplation, preparation, action, maintenance, and termination. To affect people’s purchasing behavior, you have to know what stage they are in. During this stage, there is still little overt commitment, and individuals can remain in this stage for quite some time. A prospect in this stage will begin to research information about alternatives: “The increase in demand is starting to overwhelm our equipment. I wonder if there is a faster machine out there, and what a new one would cost?” Stage Three: Preparation (Evaluation)
  • 47. Individuals in the preparation stage (i.e., evaluators) plan to take action in the near future. There are increasing signs of commitment, including a shift from focusing on the past to focusing on the future and a shift from focusing on the problem to focusing on the solution. This is the evaluation phase, during which the individual is figuring out how to solve his or her problem. This is the stage in which a goal is selected. The preparation stage can be brief, as momentum builds quickly toward the next stage, which is action. A prospect in the preparation stage will start to develop goals and a plan for action: “I’ve allocated time to visit the websites of the top three suppliers, and my goal is to talk to these companies before we have our next budget meeting.” Stage Four: Action (Purchasing) Individuals in the action stage (i.e., purchasers) exhibit the most overt change in their behaviors. As the action stage is the one in which commitments are made, this is the stage in which most sales efforts (and sales training) are focused. However, individuals at the preceding stages also need support, and providing this support can increase the number of individuals who ultimately do take action. A prospect in the action stage will have resources assigned to the project and will be actively involved in addressing any problems that arise: “We are ready to buy, but we have a concern about the terms of the contract.” Stage Five: Sold (Maintenance) Change does not end with action; otherwise, the first trip to the gym after a commitment made on New Year’s Eve would be sufficient to ensure attendance all year long. The commitment must be maintained, and any lapses must be addressed. The legal system even takes this stage into account when it specifies a time during which “buyer’s remorse” may cause an individual to change his or her mind without legal penalty. A prospect at this stage will sign a contract and be involved in the post- sale details: “Delivery and setup will be on the 14th, and training will start on the 15th.”
  • 48. Stage Six: Advocacy (Termination) This final stage is the goal for the change process; at this point the change is permanent. A prospect in the termination stage will be committed to the change: “The purchase addresses my needs so well that I’ll only use this supplier in the future.” Marketing and the Stages of Change People in the first stage (precontemplation) are not important targets for marketers. After all, these people don’t recognize that they have a problem. And the last two stages (maintenance and termination) are less important for marketing, because at this point the purchase has been made. So for most of the rest of this book I’ll focus on stages two, three, and four: contemplation (researchers), planning (evaluators), and action (purchasers). To successfully influence prospects’ purchasing behavior, you need to know what stage they are in on the continuum of change. What people need to help them move forward varies depending on the stage they are in. Illustrating the Model Now that you understand the basics of the Prochaska model, let’s examine it to see how it applies to a real-world example. Let’s begin with your own experience; I’ll use a major purchase, such as buying a car, to see how valid this model, which equates buying with change, might be. Are you currently in the market for a new car? Are you thinking about buying one? If you are like most people, the answer is no. You are reasonably content with the car you currently own. Given this attitude–“I’m not interested; don’t bother me”–what stage are you in? You are in stage one (precontemplation). At this stage, you might be interested in some general educational material about cars, but you are definitely not interested in any sales-related material. But maybe your car is getting a little old. At this point, you might start to notice new cars. You might find yourself paying attention to ads or noticing
  • 49. cars on the street. At this point, you have no commitment to change; you are in stage two (contemplation). You can stay in stage two for quite a while, years in fact. To move to the next stage, you need inspiration. This inspiration might come from a trip to your mechanic (“Oh no, I need a new transmission”), or it might come from reading a review in an online forum, or seeing a neighbor drive by in a new car. If you are actively in the market for a new car, you are in stage three (preparation) or stage four (action). At these stages, you are actively planning for a new car, and you seek reassurance. Most buyers at this stage will be comparing specifications, such as warranties, horsepower, etc., to ensure they minimize their chances of making a mistake. If you are like most of the hundreds of people to whom I have lectured over the years, you’ve found yourself in one of the stages I’ve just described at some point. You’ve seen that the model aligns with how you last bought a car. Buying is a commitment to change. Figure 3. To assist prospects in moving thro ugh the buying cycle, educate early, then inspire, and, finally, reassure. Make communication short and sweet early, and more complete later.
  • 50. What Is Needed at Each Stage of the Buying Process? Prospects in the early and middle stages of change (precontemplation and contemplation) need to increase their perception of the positive aspects of changing. Increasing the perceived positive aspects of change (that is, increasing the pros, rather than decreasing the cons) can help inspire people to believe that change (and the resulting benefits) are both possible and worth the effort. Prospects in the later stages of change (preparation and action) need to decrease their perception of the negative aspects of changing. Reducing the perceived negative aspects of change (that is, decreasing the cons rather than increasing the pros) provides the reassurance they need to feel comfortable moving forward, knowing that they are on the right track. The unaware (those in precontemplation) need education. Educational communication should be strictly educational, with no sales “flavor.” Researchers (those in contemplation) need inspiration. Inspirational communication should focus on the benefits of purchasing, communicating with only a few details. Evaluators and buyers (those in planning and purchasing) need reassurance. Communications designed to reassure will need to be more complete than communications designed to inspire. Late- stage buyers need more details, so longer communication is appropriate with them. You will want to focus communications on how the benefits will be delivered or achieved. Early stage prospects (the unaware in precontemplation) need education. Middle-stage prospects (researchers in contemplation) need inspiration. Late-stage prospects (evaluators in preparation and purchasers in action) need reassurance.
  • 51. The Value of Understanding How People Buy Prochaska’s model provides quite a bit of valuable guidance that should inform your marketing efforts. First, buyers progress through several discrete stages on the way to a final purchase. At each stage, their actions vary and you can determine what stage they occupy by behavioral clues, such as the types of questions they ask. At each stage, they need different types of information, and the purpose of communicating with them is different. The type of support you offer your prospects must differ depending upon the stage of the buying cycle they currently occupy. The unaware need education. Researchers need inspiration. Evaluators and purchasers need reassurance. Now that you understand how people buy and the types of support they need, I’ll examine the process by which high-performance marketing produces changes in audiences’ attitudes, beliefs, or behaviors: the marketing mechanism of action (MMOA). 1 James O. Prochaska, PhD, et al., Changing for Good (New York: William Morrow, 1994). Blair Enns of Win Without Pitching brought this model for change to my attention.
  • 52. » » » » » 6 THE MARKETING MECHANISM OF ACTION (MMOA) To describe the framework and various components of marketing and how they function together, I’ve borrowed a term from pharmacokinetics: the mechanism of action. In pharmacology, the mechanism of action is the specific interaction through which a drug produces its biological effect. Following this analogy, the marketing mechanism of action (MMOA) is the specific chain of interactions through which marketing produces changes in audiences’ attitudes, beliefs, or behaviors. The MMOA occurs within a framework composed of five key components: Organization Brand-story Touchpoints Audiences Environment Let’s take a look at each one in detail. Organization
  • 53. At the center of each organization’s universe are its mission, vision, values, and objectives. These beliefs are typically expressed through a strategic plan intended to inform and guide the organization’s actions and purpose and (hopefully) its public-facing communications. Internal alignment of these strategic elements within the organization provides consistency vital to the plan’s success. But to achieve success, something else is needed to complete the picture. In addition to a strategic plan– and optimally, as part of it–there must also be clear differentiation between your organization’s products and services and those of your competitors. Without differentiation, your organization and its offerings will be perceived as a commodity, which means there will be only a few ways for you to compete–for example, on price (read: lowest), on delivery (read: fastest), or on a few other attributes. Figure 4. The five sections of the MMOA are organized in concentric rings, orbits if you will, that start with your organization at the center and expand all the way out to your environment. Please note that the concentric circles could be centered at any stage of this diagram; for purposes of clarity they are centered on the organization. Successful differentiation–carefully chosen, clearly defined, and embedded throughout the entire MMOA–creates a unique space in the minds of your audiences, a space that they associate only with you. The process of creating this unique space is called positioning. If your position is the defined, unique space you decide to occupy in the minds of your audiences, then the space you currently occupy there is your
  • 54. image. It’s important to understand the difference. The position is a choice you make; it represents the perception you want your audiences to have of you. The image is the perception the audiences actually have of you. The position you select may or may not match your current image. In other words, what you want to be known for may not be what you are known for now. If that’s the case, don’t despair. There are many reasons for this and many ways to address it. But in every case, successful positioning leads to a clear, unique image, one that will influence your audiences’ attitudes, beliefs, or behaviors. Successful, proper positioning and internal alignment (consistency) provide the essential foundation for all high-performance marketing. Brand-Story Immediately outside the organizational center of your marketing universe is the next ring: that of the brand-story. Marketers are fond of buzzwords, and few words have as many different meanings as brand. One of the problems with the term is that one of the most common meanings refers to the visual representation of the company, such as your logo, corporate signature, or trademark. This means that rather than representing the entire public face of the organization, the word brand has come to represent only the organization’s visual component. And to make matters more confusing, some marketers are abandoning the term brand for other terms, such as narrative or story. There are many meanings of the word brand, and I’ll clarify the three main definitions in chapter nine. For now, I’ll use the term brand-story to refer to your organization’s unique verbal and visual representations–the core of its public face. I’m using this term to ensure that you think about more than just the visual part of your marketing. To be successful, marketers must control their brand-story, ensuring that it aligns with the mission, vision, values, and objectives of the organization. The brand-story must articulate the position of the organization. Touchpoints
  • 55. » » » » Touchpoints are those places where your audiences come into contact with your organization in any form (such as your brand-story)–where they touch. Touchpoints are avenues for your audiences to learn about your position and your brand-story; to be educated, inspired, or reassured by your organization. In fact, touchpoints by definition are the only way an audience can learn about your brand-story. A touchpoint can be something obvious, such as an ad, a website, or a trade-show booth. But the places where you and your audiences touch can also be more subtle–for example, an invoice, the packaging of the disposable portion of your product, the instruction manual, a casual conversation with a salesperson on the floor of a trade show, even a mention of your organization on a social media site such as LinkedIn. All are touchpoints. Each of your organization’s touchpoints convey a message, however subtle, about your organization and your brand-story. Thus, each also is an opportunity to influence your audiences. Touchpoints can be divided into four basic categories: Earned exposure Content marketing Paid exposure Personal interactions Since each and every touchpoint is an opportunity to influence your audiences, to be successful your brand-story–which articulates your position– must be expressed consistently across all of your touchpoints. In other words, all of your messaging as well as your visual appearance must be consistent and clearly related–otherwise you risk confusing your audiences. Without consistency, you’ll lose out on the cumulative effect that occurs as touch-points reinforce each other, combining to shape your desired image in the minds of your audiences. Audiences
  • 56. You may have noticed that I have been using the word audiences (plural) rather than audience (singular). I say audiences because you actually have many different types of audiences besides your customers. And they all are bombarded by marketing messages from you and your competitors. Your customers, while important, are only a small segment of the people who will come in contact with your brand-story. And customers also are only a small segment of the people who will play an important role in your brand-story’s success. In addition to your customers, you are also communicating with your potential customers. And let’s not forget your investors and potential investors, your suppliers and potential suppliers, your employees and potential employees, the media, the regulatory agencies, and even the postal carrier and other delivery people, the janitorial staff, and any other people who happen to come in contact with your brand-story. But that’s not all. There also is a large set of digital entities that are paying attention to your touchpoints, such as the search engines that send out “spiders” to “crawl” across your website, analyzing and interpreting your digital presence. Taken all together, these many groups form the audiences for your organization. Some will obviously generate more revenue than others. The key is to remember that you don’t have just one audience; you have many audiences. Now, audiences is not the perfect word, because it implies that all these different groups are sitting quietly in their seats, waiting for you to say something. Of course, nothing could be further from the truth. The analogy works better if you envision them as a collection of middle-school students. They are all busy, chattering away among themselves or looking out the window, focused on any other subject than you. They have their own concerns. Getting their attention is not always simple or easy; holding it can be even more difficult. So, once you realize that many audience groups will come in contact with your brand-story, you must craft high-performance marketing to address most, if not all, of these groups. Ignoring any group, whether primary, secondary, or even tertiary, depending on their potential role in your success, could prove disastrous. For example, early stage life science companies that are dependent on venture funding cannot focus only on customers while ignoring investors,
  • 57. or the media, or the regulatory agencies, or employees, as all these audiences ultimately will play a key part in the company’s success. To be successful, marketers must understand the diverse needs of each of their audiences, and have a systematic process of communicating with them and obtaining feedback from them. Environment The outermost ring of the MMOA is the environment within which your audiences work–their business sectors. As part of the environment, there are many other factors that will play a role in the success of your marketing efforts, such as competitors, social influences, market trends, economic influences (from the sector and from the overall world economy), technological changes, and the regulations that govern the industry–just to name a few. Each can affect the success of your marketing and the business success of your organization. To prosper, marketers must navigate changing environmental conditions while staying consistent in their brand-story as they attempt to educate, inspire, and reassure their audiences. The MMOA in Action Let’s recall the stated marketing goal–to influence audiences’ attitudes, beliefs, or behaviors in a certain way. To achieve this goal, you activate the MMOA, which works like this: Your organization’s position is articulated in your brand-story, which is expressed through multiple touchpoints. The impressions from all these touchpoints are combined and distilled by the audiences to create a specific image in their minds. This image can influence the audiences’ attitudes, beliefs, or behaviors, which also are affected by their environment (including competitors). This seems simple, doesn’t it? It is, in theory. Start by picking a position. Articulate this position in your brand-story. Express your brand-story in your touchpoints. And finally, measure the images created in the minds of your audiences. Simple and straightforward.
  • 58. The reality of marketing is more complex. Successful, high-performance marketing requires careful consideration of each of the components of the MMOA. The proper position must be carefully chosen, considering the fundamental values and vision of your organization, the business environment, and your competitors’ positions. Your position must meet seven key criteria to be effective (more information on this will appear in the next chapter). The Marketing Mechanism of Action (MMOA) is the specific chain of interactions through which high performance marketing produces changes in your audiences’ attitudes, beliefs, or behaviors. Your brand-story must then express your chosen position clearly and succinctly. Your touchpoints must articulate your brand-story clearly and consistently, while making it accessible and compelling to your audiences. Your audiences’ attitudes, beliefs, or behaviors should be measured and the knowledge gained should be used to modify some (or all) of the previous activities in the MMOA. A Caveat The MMOA does not describe the mental processes by which audience members change their internal attitudes, beliefs, or behaviors when coming in contact with one or more touchpoints. Such a description would venture well past marketing into discussions of psychology, personality, and other behavioral sciences.
  • 59. Figure 5. The MMOA begins with a carefully selected position, which must be clearly and carefully articulated in your brand-story. Your touchpoints must then express your brand-story consistently. The audiences will end up with an image in their minds, and if you’ve managed this process carefully, this image will match your chosen position. But you don’t need to understand these subjects to find the MMOA useful. Let’s look at this from the audiences’ point of view. When audiences look at you, or more specifically, when they look at or listen to your touch- points–which express your brand-story, which articulates your position– they are looking for clues to help them decide what to think about you and your offering. They want to know how to classify you mentally. “Is this organization worth paying attention to or not?” and “Are they different, and if so, how?” Understanding how the MMOA works enables you to influence the answers to these questions, but only if you harness the power of the MMOA by getting the following aspects of your marketing lined up correctly. First, proper positioning is vital. If you don’t choose a position that meets the seven fundamental criteria (clear, unique, authentic, sustainable, important, believable, and compelling–as I’ll cover in the next chapter), your marketing will always be hamstrung.
  • 60. » » Second, this position must be clearly articulated in your brand-story. Without clear articulation, your audiences won’t understand what you are trying to tell them. Third, each and every touchpoint must express your brand-story consistently. This is particularly important for employees; each must understand the position of the organization and how it is articulated in the brand-story. Without consistency, your audiences will be confused. Fourth, you must understand your audiences, and what they find important, believable, and compelling. Ignoring one or more audience groups could threaten your ultimate success. Fifth, you must understand your environment, and keep up to date on the many factors that can change your competitive landscape, such as regulatory issues, technological trends, and competitive behavior. An Example To illustrate the MMOA in action, it may help to examine how it works via the story of a fictitious life science company, SpeedyTech Corporation. SpeedyTech is the developer of equipment that helps research scientists conduct experiments in the lab. It has invented a breakthrough technology that enables its equipment to deliver results in half the time–a huge competitive advantage. The company dubs this technology the Frequency Analyzing Spectrum Test, which has a convenient acronym: FAST. It carefully crafts a position, which I’ll summarize as, “Our FAST equipment gives you the fastest results.” SpeedyTech develops a brand-story around this position, including the tagline, “FASTest results.” It develops touchpoints to convey this message to its audiences. SpeedyTech is careful to use the tagline and messages about this new equipment consistently. Intent on getting the word out to all its audiences, it does the following: Develops a website that is rich in content about the advantages of this new equipment. Develops and deploys e-mail blasts to drive audience members to this website.
  • 61. » » » » » » » » Gives podium presentations about the groundbreaking science being developed with its equipment. Writes articles for trade publications. Exhibits at trade shows. Taps social networks to spread the word about everything it is doing. Develops a monthly publication that features the science of some of its best customers. Uses promotional tactics to drive adoption of the technology, such as referral programs and discounts. Uses key opinion leaders to drive awareness about its technology through webinars and presentations at conferences. Uses marketing automation to track and measure visitors’ behavior on its website, and then communicates to them based on their behavior. As a result of these efforts, the word spreads. Audiences come to associate SpeedyTech and the FAST product with the fastest test results available. Inquiries about the equipment start to increase. Editors and reporters want to interview the inventor of the technology. About 18 months after FAST’s introduction, SpeedyTech conducts market research and determines that 63 percent of the population of potential users associates this equipment with the concept of “fastest results.” And both the number of inquiries about the product and the deals closed to purchase it continue to increase. This is the MMOA in action: a position is chosen, which is then articulated clearly in the brand-story, which is expressed consistently in touchpoints and thus influences the attitudes, beliefs, or behaviors of the audiences. Alas, the story of SpeedyTech doesn’t end there. SpeedyTech salespeople are reporting that they have begun to lose business to Lightning Lab, a small start-up competitor that has developed
  • 62. » » » » » and recently introduced new technology that offers even faster results at better resolution! Lightning Lab’s website shows its own product side by side with a recognizable silhouette of SpeedyTech’s product, along with the time-to-result figures–and asks the simple question, “Who really has the fastest results?” Suddenly SpeedyTech’s position–“Our FAST equipment gives you the fastest results”–is in doubt. And the brand-story embodied by the tagline–“FASTest results”–is no longer a believable promise, because someone else’s results are faster. Pouring more money into marketing tactics, such as displaying “FASTest results” on a larger trade-show booth, won’t help. SpeedyTech now has a choice to make. Does it acquire the smaller competitor (at a premium) to ensure that its position and the brand promise remains intact, or does it choose a new position and attempt to retrain all its audiences that the company no longer stands for the “FASTest results” but something else? Either choice is distasteful and expensive. SpeedyTech’s dilemma can be traced to one key deficiency in its MMOA– its position. Its position–“Our FAST equipment gives you the fastest results’–unintentionally left the door open to competitive advances. The moral of the story is that each component of the MMOA requires specific and particular attention. At the environmental level, monitoring of trends and competitors is crucial. At the audiences level, the effectiveness of the touchpoints must be constantly assessed through monitoring of the audiences’ images of the organization’s offering. At the touchpoint level, the brand-story must be expressed consistently. At the brand-story level, the position must be clearly articulated. At the organizational level, care must be taken to ensure that the position meets certain specific criteria: it should be clear, unique, authentic, sustainable, important, believable, and compelling. I’ll elaborate on these criteria in the next chapter. Unfortunately, SpeedyTech chose a position that was neither unique nor sustainable.
  • 63. While the MMOA is simple in theory, developing and implementing high-performance marketing requires adherence to a set of principles that have been tested by real-world experience. In the following chapters, I’ll cover these principles and dive more deeply into the components of the MMOA and explain them in detail, starting with your position, which is, in effect, the DNA of all your marketing efforts.
  • 64. 7 POSITION–YOUR MARKETING DNA In chapter six you saw how the marketing mechanism of action (MMOA) works to create a unique space in the minds of your audiences and that the first step in the process of creating this unique mind space–or image–is positioning. Successful positioning leads to a clear, unique image, one that will influence your audiences’ attitudes, beliefs, or behaviors (and, ultimately, spur them to some action). Like most marketing terms, position (or positioning) has multiple definitions. I’ll use this one: positioning is your organization’s conscious effort to select attributes that you want your audiences to associate exclusively with your offering. To understand how positioning works, consider a living cell. The cell’s DNA controls most of the cell’s activity. A cell’s DNA is locked inside the nucleus–effectively hidden from the rest of the cell. Its effects are only visible through intermediary mechanisms, such as RNA and protein expression. Your position is essentially your marketing DNA. Unlike a cell, you actually can choose your marketing DNA by choosing your position. And given that the function of your position is to differentiate your brand from your competitors in ways that are important, believable, and compelling, the position you choose is very important. In fact, selecting an effective position is the fundamental starting point for your marketing efforts, and absolutely critical to the success of all your marketing initiatives. Though the articulation of your position (in your brand-story) and the subsequent expression of this brand-story (in your touchpoints) will be publicly visible, the exact position your organization selects should remain internal or private to your organization. This position is the controlling link
  • 65. between your organization’s strategic competitive advantage and its tactical marketing efforts, just as DNA is the controlling link between the cell’s overall purpose and its protein expression, and therefore its metabolism. In this sense, your position is the core of your marketing plan. Your position should remain private–lest competitors attempt to thwart your plans. In more than two and a half decades of working with life science companies, I’ve only had a few clients who provided a clear, concise, effective, robust positioning document at the start of an engagement. More often, clients provide one of two things, either their mission and vision statements (which are for public consumption and typically don’t provide enough guidance to direct and support the marketing function in making distinguishing decisions) or an unfocused goal statement that is being inconsistently and ineffectively communicated through taglines, messaging, and brand-story. Your position is the DNA of all your marketing efforts. The lack of effective, robust positioning statements and the prevalence of poor substitutes is evidence of how difficult effective positioning is to accomplish. Unfortunately, marketing activities that aren’t driven by a unique position are pretty much guaranteed to produce mediocre marketing results. Without a position that is unique, customers have no reason to see your offering as anything but a commodity. Choosing a unique and defensible position, however, can lead to great success. For example, Forma was hired to help develop marketing tactics for a midsize service organization serving the clinical trial market. This is a highly commoditized sector; many competitors’ websites use language that sounds similar enough to seem identical. This organization wanted to increase its success in landing new business. Through careful examination of the organization’s business practices, Forma identified one area where its offering was indeed distinct. It provided a significant and tangible benefit for the organization’s customers.
  • 66. » » This was a marketer’s dream: there were strong, verifiable customer benefits from an offering that was unique in the market. This was a strong strategic foundation. At a meeting with the customer’s entire team, everyone agreed that the organization should use this position as the foundation on which to build high-performance marketing efforts. The next steps were to articulate these benefits in the brand-story and then express this brand-story consistently across the entire ladder of lead generation. Before Forma was even able to take these steps, the CEO modified the company’s sales presentation to incorporate the new position. The very first time she used this new approach–the day after our meeting–she closed a sale with a new customer. What made this company’s new approach successful? Its corporate identity didn’t change and the existing tactical expressions (the touchpoints) it was using were no different than its competitors’ tactics–every competitor had a website, every competitor went to the same trade shows, etc. What made the difference was a position that met the key criteria for effective positioning. The success of the company’s marketing efforts can clearly be traced to this unique position. It is important to take the time to identify your position, one that meets all the criteria for successful positioning. Successful Positioning for Life Science Companies There are seven criteria for a successful position. All seven need to be present. Miss one or more and your marketing efforts will likely produce only mediocre results. By the way, these criteria also apply to the marketing claims you make and, if you are doing your job right, hopefully to the resulting image created in the minds of your audiences. So, your position, your claims, and the resulting image must meet the following criteria: Clear Unique